Colt Commercial Inc. vs. The Commissioner of Internal Revenue

DECISION

BAUTISTA, J.:

The Case

Before the Court is a Petition for Review¹ filed by petitioner on November 23, 2015, pursuant to Section 7(a)(²)2 of Republic Act ("RA") No. 11253, as amended by RA No. 92824 and RA No. 95035, in relation to

Section 3(a)(1)6, Rule 4 of the Revised Rules of the Court of Tax Appeals ('RRCTA")l, seeking for the Court to render judgment granting its claim for refund in the amount of Php2,131,445.288 representing its alleged unutilized input tax payments attributable to its zero-rated sales for the second quarter of taxable year ("TY") 2013.9

The Parties

Petitioner is a corporation duly organized and existing under the laws of the Philippines, with business address at Suite 508 Padilla Delos Reyes Bldg., 232 Juan Luna St., Brgy. 289 Zone 027, Binondo Manila.lo Its primary purposes are (1) "[t]o engage in the business of merchandising, distributing and marketing; whether as principal, agent, indenter or manufacturer's representative, wholesale or retail, such as but not limited to industrial, agricultural, manufacturing tools and equipment, engineering products, hardware items, construction materials, and electrical supplies and[/]or any and all kinds of goods, wares and merchandise[;]"11 and (2) "[t]o engage in the business of import and export as principals, factors, representatives, agents or commissioned merchants with respect to buying, selling[,] trading or dealing in any and all kinds of goods, wares, products of all classes and description, distribution, import and export business[.]"12 6 Sec. 3. Cases within the jurisdiction of the Court in Division. -The Court in Division shall exercise:

(a) Exclusive original over or appellate jurisdiction to review by appeal the following: xxx

XXX

XXX

XXX

(2) Inaction by the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue, where the National Internal Revenue Code or other applicable law provides a specific period for action: Provided, that in case of disputed assessments, the inaction of the Commissioner of Internal Revenue within the one hundred eighty day-period under Section 228 of the National Internal Revenue Code shall be deemed a denial for purposes of allowing the taxpayer to appeal his case to the Court and does not necessarily constitute a formal decision of the Commissioner of Internal Revenue on the tax case; xxx 7 A.M. No. 05-11-07-CTA, November 22,2005. s See Records, Vol. 1, Resolution, p. 449; the Court noted petitioner's Manifestation to rectify the erroneously stated amount for refund in the Petition for Review from Php2,194,583.72 to Php Php2,131,445.28.

9 Records, Vol. 1, PFR, Prayer, p. 18.

1o Records, Vol. 2, Joint Stipulation of Facts and Issues ("JSFI"), par. 1(a), p. 507; Records, Vol. 1, Exhibit "P-1," Certificate of Incorporation and Cover Sheet, pp. 148-149. u Records, Vol. 2, JSFI, par. 1(b), p. 507; Records, Vol. 1, Exhibit "P-2," Articles of Incorporation, Primary, par. 1, p. 150.

12 Records, Vol. 1, Exhibit "P-2," Articles of Incorporation, Primary, par. 2, p. 150. (

Petitioner is registered with Revenue District Office ("RDO") No. 30, Binondo, Manila, as a VAT taxpayer with Taxpayer Identification No. 008-327-264-000.13 Respondent is the duly appointed Commissioner of Internal Revenue ("CIR"), vested with authority to administer and to enforce all laws pertaining to internal revenue taxes, and has jurisdiction to decide claims for refund.

The Facts

Petitioner has zero-rated and VA Table sales per Quarterly VAT Returns filed for the second quarter of TY 2013.14 In its Administrative Claim for Excess Input VAT Refund1S dated June 26, 2015 filed with BIR RDO No. 30 on even date, petitioner claimed the amount of Php2,131,445.28 as excess input V AT.16 Attached thereto are its Application for Registration Information Update (BIR Form No. 1905)17, Application for Tax Credits/Refunds (BIR Form No. 1914)18, and a Sworn Certification19 that the documents submitted are complete for the purpose of processing the claim for refund.

On August 6, 2015, petitioner, through a certain Jennifer S. Mafiago, received Letter of Authority ("LOA")-030-2015-00000243 (SN: eLA201100089502)2° dated July 30, 2015 issued by Officer-In- Charge (" OIC")-Regional Director of Revenue Region No. 6 - Manila, Araceli L. Francisco. The LOA authorizes Revenue Officer ("RO") Eliseo Raul Bacalzo and Group Supervisor ("GS") Fernando Matias of Revenue District No. 030- Binondo to examine petitioner's books of accounts and other accounting records pursuant to a mandatory audit for its claim for VAT refund covering the period starting April1, 2013 to June 30,2013.

n Records, Vol. 2, JSFI, par. 1(c), p. 507; Records, Vol. 1, Exhibit "P-5," BIR Certificate of Registration, unnumbered page between pp. 178 and 179.

14 Records, Vol. 2, JSFI, par. 1(d), p. 507. 15 Id., Vol. 1, Exhibit "P-13," Administrative Claim, p. 390. 16 Id., Vol. 2, JSFI, par. 1(e), p. 508.

17 Id., Vol. 1, Exhibit "P-14," BIR Form No. 1905, pp. 391-392. 1s Id., Exhibit "P-15," BIR Form No. 1914, p. 393. 19 Id., Exhibit "P-16," Sworn Certification, p. 394. 20 BIR Records, Letter of Authority, p. 1. f

On November 23, 2015, petitioner filed the present Petition for Review21 with the Court.

The Court issued Summons22 against respondent on December 4, 2015, ordering him to submit his Answer within fifteen (15) days from service.

Respondent filed an Answer23 on December 22, 2015, interposing the following Special and Affirmative Defenses: (1) that the Petition for Review is premature, considering that petitioner's claim for refund or credit of unutilized tax payments attributable to zero-rated sales for the first quarter of TY 2013 in the amount of Php2,131,445.28 is still pending investigation; (2) that petitioner already applied the entire amount of input tax by carrying it over to succeeding taxable quarters;

(³) that the remedies of tax refund and input tax carry-over are alternative and the choice of one precludes the other; (⁴) that a claim for refund is construed strictly against the claimant and should not be allowed unless proven explicitly and categorically; and (5) and that tax refunds are in the nature of tax exemptions, and claimants bear the burden of proving the factual basis or bases of their claims, and showing that the legislature intended to exempt them.24 On March 28, 2016, petitioner and respondent respectively submitted their Pre-Trial Brief25 and Respondent's Pre-Trial Brief26• During the Pre-Trial Conference27 held on March 29, 2016, the Court granted the parties a period of fifteen (15) days or until April12, 2016 to submit their joint stipulation of facts and issues. Accordingly, on April 13, 2016 and April 22, 2016, the parties filed their Joint Stipulation of Facts and Issues2s ("JSFI") and Supplemental JSFI29, respectively.

On May 5, 2016, a Pre-Trial Order30 was issued by the Court terminating the Pre-Trial Conference.

21 Records, Vol. 1, PFR, pp. 10-80, with annexes. 22 Id., Summons, p. 81.

23 Id., Answer, pp. 82-85.

24 Id., Answer, Special and Affirmative Defenses, p. 83. 25 Id., Pre-Trial Brief pp. 130-147.

26 Id., Respondent's Pre-Trial Brief pp. 441-443. 27 Records, Vol. 1, Minutes of Hearing dated March 29, 2016, p. 444. zs Id., Vol. 2, JSFI, pp. 507-509.

29 Id., Supplemental JSFI, pp. 510-523.

3o Id., Pre-Trial Order ("PTO"), pp. 525-530. (

On August 22, 2016, the Court-appointed31 Independent Certified Public Accountant ("ICP A") transmitted a softcopy of his ICPA Report, along with annexes and exhibits.32 In the course of the proceedings, petitioner presented the following witnesses: (1) Mr. Cyrus S. Chung33, petitioner's President;

(2) Ms. Cherilyn R. Chung34, petitioner's Corporate Secretary and Treasurer; (3) Ms. Jennifer S. Mafiago3s, petitioner's accounting head; and (4) Mr. Garry Pagaspas36, the Court-appointed ICPA. On October 28, 2016, petitioner filed its Formal Offer of Evidence37 ("FOE"), offering Exhibits "P-1," "P-2," "P-3," "P-4," "P-5," "P-6 II "P-7 II "P-8 II "P-9 II "P-10 II "P-11 II "P-12 II "P-13 II "P-14 II "P-

I

I

I

I

I

I

I

I

I

15," "P-16, 11 "P-17-A, 11 "P-17-B," "P-18," "P-19-A," "P-19-B," "P-19-C," "P-19-D, 11 "P-20-A, 11 "P-20-B, 11 "P-20-C, 11 "P-20-D, 11 "P-21-A, 11 "P-21-B, 11 "P-22, 11 "P-23, 11 "P-24, 11 "P-25," "P-26," "P-26-A, 11 "P-27, 11 "P-27-A,

11 "P-

28," "P-28-A," "P-29, 11 "P-29-A, 11 "P-30, 11 and "P-30-A."

On January 6, 2017, the Court admitted all of petitioner's exhibits, save for Exhibit "P-7" for failure to present the original for comparison, and Exhibits "P-8, 11 "P-10,

11 and "P-24

11 for failure to submit the duly marked exhibits.38 The Court likewise noted that Exhibits "P-9, 11 "P-11, 11 and "P-25" respectively refer to Exhibits "P-44- Series," "P-45-Series, 11 and "P-45-Seriesll to "P-48-Series" in the ICP A Report.

Unsatisfied, petitioner filed its

Motion

for

Partial

Reconsideration39 on January 23, 2017. During the hearing4o held on 31 Records, Vol. 1, Motion to Commission Independent Certified Public Accountant, pp. 453-457; Records, Vol. 1, Exhibits "P-41" and "P-41a," Judicial Affidavit ("JA"), pp. 458-505, with annexes; Records, Vol. 1, Oath of Commission (For a CPA Firm), p. 543; Records, Vol. 1, July 19, 2016 Minute Resolution, p. 542. 32 CD, !CPA Report with annexes.

that date and as confirmed in an Order41, respondent manifested that he has no evidence to present, as the report for investigation has yet to be approved by higher authorities. The parties were then granted thirty (30) days from receipt of the resolution on petitioner's Motion for Partial Reconsideration to submit their respective memoranda. On February 17, 2017, the Court resolved to admit Exhibits "P-8" and "P-10," and reiterated its denial of Exhibit "P-7."42 Respondent's Memorandum43 was submitted to the Court on March 23, 2017 via registered mail; while petitioner filed its Memorandum44 on April12, 2017.

Thereafter, the Court resolved to submit the case for decision through its Resolution4s dated April19, 2017; hence, this Decision.

The Issue46

WHETHER PETITIONER IS ENTITLED TO A

REFUND OF THE AMOUNT OF PHP2,131,445.28 FOR THE SECOND QUARTER OF TY 2013.

Petitioner's Arguments47

Petitioner alleges that the Petition for Review is not premature as respondent failed to act on the administrative claim within one hundred and twenty (120) days, as prescribed by law; that petitioner is entitled to a VAT refund in the amount of Php2,131,445.28 for the second quarter of TY 2013; and that respondent's defense of its carry- over of unutilized excess input VAT does not have the effect of utilization as the input VAT claimed was deducted as "VAT Refund/TCC Claimed" in petitioner's quarterly VAT Return for the first quarter of 2015.

41 Records, Vol. 2, Order, pp. 875-876.

42 Id., Resolution, pp. 882-883.

43 Id., Respondent's Memorandum, pp. 885-888. 44 Id., Memorandum, pp. 890-913.

45 Id., Resolution, p. 915.

46 Id., PTO, B. Issue, p. 526.

47 Records, Vol. 2, Memorandum, Discussion, pp. 902-911. (

Respondent's Counter-Arguments4B

Respondent claims that per Table 10 of the ICPA Report, the entire amount of input tax of Php2,131,445.28 was applied against its output tax by carrying over the same to succeeding taxable quarters; that petitioner failed to provide the Court with the originals or Certified True Copies of the PEZA and SMBA Certificates of Registration of petitioner's clients or customers, which fact was admitted by the ICPA in his report; that the denial of Exhibit uP-7'' is fatal to petitioner's Petition for Review; that while the ICP A recommended in his report for the VAT refund in the amount of Phpl,612,443.35, such recommendation is still subject to the Court's discretion relating to the documentation requirements; that in a claim for refund or tax credit, the applicant must satisfy all the documentary and evidentiary requirements of an administrative claim; and that being a derogation of the sovereign authority, a statute granting tax exemption is strictly construed against the person claiming exemption.

The Ruling of the Court

Petitioner's

claim was not prematurely filed, and the Court has jurisdiction over the instant case.

The Court must first determine whether petitioner's Petition for Review was filed prematurely, to establish its jurisdiction over the case at bar.

Anent the timeliness of filing the administrative claim for refund, Section 112(A) of the 1997 NIRC provides as follows: SEC. 112. Refunds or Tax Credits of Input Tax.- (A) Zero-Rated or Effectively Zero-Rated Sales.- any VAT- registered person, whose sales are zero-rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied 48 Records, Vol. 2, Respondent's Memorandum, Argument/Discussion, pp. 886-887.

I

against output tax: Provided, however, That in the case of zero- rated sales under Section 106(A)(2)(a)(1), (2) and (B) and Section 108 (B)(1) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP): Provided, further, That where the taxpayer is engaged in zero-rated or effectively zero-rated sale and also in taxable or exempt sale of goods of properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately on the basis of the volume of sales.

XXX

XXX

xxx49 As to the timeliness of the judicial claim for refund, Section 112 (C) of the 1997 NIRC, in relation toRR No. 16-200550, is instructive, to wit: SEC. 112. Refunds or Tax Credits of Input Tax.-

XXX

XXX

XXX

(C) Period within which Refund or Tax Credit of Input Taxes shall be Made.- In proper cases, the Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with Subsections (A) and (B) hereof.

In case of full or partial denial of the claim for tax refund or tax credit, or the failure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one hundred twenty day-period, appeal the decision or the unacted claim with the Court of Tax Appeals.

XXX

XXX

xxx51 Corollary, Section 4.112-1(d) of RR No. 16-2005 states the following:

49 Underscoring ours.

50 Consolidated Value-Added Tax Regulations of 2005, effective November 1, 2005. 51 Italics retained, underscoring ours.

(

Sec. 4.112-1. Claims for Refund/Tax Credit Certificate of Input Tax.

XXX

XXX

XXX

(d)

Period

within which refund or tax credit certificate/refund of input taxes shall be made In proper cases, the Commissioner of Internal Revenue shall grant a tax credit certificate/refund for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with subparagraph (a) above. In case of full or partial denial of the claim for tax credit certificate/ refund as decided by the Commissioner of Internal Revenue, the taxpayer may appeal to the Court of Tax Appeals (CT A) within thirty (30) days from the receipt of said denial, otherwise the decision shall become final. However, if no action on the claim for tax credit certificate/refund has been taken by the Commissioner of Internal Revenue after the one hundred twenty (120) day period from the date of submission of the application with complete documents, the taxpayer may appeal to the CT A within 30 days from the lapse of the 120-day period.s2 The above provisions were applied in Philippine jurisprudence in the case of Commissioner of Internal Revenue v. Mindanao II Geothermal Partnership-53, wherein the Highest Tribunal held that the taxpayer can file a judicial claim in one of two ways, viz.: (1) within thirty (30) days after the CIR denies the claim within the one hundred and twenty (120)-day period; or (2) within thirty (30) days from the expiration of the one hundred and twenty (120)-day period, if the CIR does not act within the one hundred and twenty (120)-day period. Moreover, the Supreme Court in Rohm Apollo Semiconductor Phils. v. Commissioner of Internal Revenue54 reminded taxpayers that when the one hundred and twenty (120)-day period lapses and there is inaction on the part of the CIR, the taxpayer must no longer await the decision. This is because the CIR' s inaction is already deemed a denial of the refund claim; hence, the taxpayer must file an appeal 52 Italics retained, underscoring ours.

53 G.R. No. 191498, January 15, 2014, 713 SCRA 645. 54 G.R. No. 168950, January 14, 2015, 745 SCRA 663. ( within thirty (30) days from the lapse of the one hundred and twenty (120)-day waiting period.

The above is consistent with the jurisdiction of the division of the CTA under Section 3(a)(2), Rule 4 of the RRCTAss. It provides that the Court in Division shall exercise exclusive original or appellate jurisdiction to review, by appeal, the inaction by the CIR in cases involving refunds of internal revenue taxes, where the 1997 NIRC provides a specific period for action.

In sum, based on Section 112(A) of the 1997 NIRC, petitioner has two (2) years from the close of the taxable quarter when the sales were made to file its administrative claim with the CIR. The latter is given one hundred and twenty (120) days from submission of complete supporting documents to decide the claim. In case of inaction by the CIR after one hundred and twenty (120) days from the date of submission of the application with complete documents, Section 112(C) of the 1997 NIRC, in relation toRR No. 16-2005, grants petitioner thirty

(30) days to file its judicial claim with the CTA. If the CIR does not decide within that period, taxpayers must elevate the matter to the CT A within thirty (30) days; otherwise, the Court will be deprived of jurisdiction to hear and determine the case. The subject period covers April 1, 2013 to June 30, 2013, the second quarter of TY 2013; hence, the taxable quarter closes on June 30, 2013. Therefrom, petitioner had two (2) years or until June 30, 2015 to file its administrative claim for refund.

Records reveal that petitioner timely filed its administrative claim for refund on June 26, 2015, four (4) days before due date. Thereafter, the CIR has one hundred and twenty (120) days or until October 24, 2015 to act on the claim. Due to the inaction of respondent, petitioner had thirty (30) days or until November 23,2015 to appeal to the CT A. Therefore, the present Petition for Review was filed just in time on November 23, 2015.

Having settled that the petitioner timely file the instant Petition for Review, the Court shall now proceed to determine petitioner's compliance with the other requisites, pursuant to the afore-quoted provision of Section 112(A) of the 1997 NIRC, to wit: 55 A.M. No. 05-11-07-CTA, November 22,2005. (

1.

Petitioner is VAT-registered;

2.

There must be zero-rated or effectively zero-rated sales; 3.

The input taxes were incurred or paid;

4.

Such input taxes are attributable to zero-rated or effectively zero-rated sales; and 5.

The input taxes were not applied against any output tax liability.

Petitioner is VAT -registered.

It is undisputed that petitioner is registered with the BIR as a VAT taxpayer, as evidenced by its BIR Certificate of Registration No. C0000579258 and Taxpayer's Identification Number 008-327-264-000.56

Petitioner

has zero-rated or effectively zero-rated sales.

With regard to the requisite that the taxpayer should be engaged in zero-rated or effectively zero-rated sales, records show that petitioner is duly registered with the Securities and Exchange Commission ("SEC")57 and is primarily engaged in the business of merchandising, distributing, and marketing, whether as principal, agent, indenter or manufacturer's representative wholesale, or retail, such as but not limited to industrial, agricultural, manufacturing tools and equipment, engineering products, hardware items, construction materials, and electrical supplies and or any all kinds of goods, wares and merchandise.ss Petitioner avers that majority of its clients are entities doing business within the economic zone and registered with the Philippine Economic Zone Authority ("PEZA") and Subic Bay Metropolitan

Authority ("SBMA"),s9 and that the sales to said buyers are classified as effectively zero-rated transactions, pursuant to Section 106(A)(2)(c) of the 1997 NIRC of19976o, to wit:

SEC. 106. Value-Added Tax on Sale of Goods or Properties.- (A) Rate and Base of Tax- xxx

(2) The following sales by VAT-registered persons shall be subject to zero percent (0%) rate:

XXX

XXX

XXX

(c) Sales to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects such sales to zero rate.

Furthermore, pertinent provisions of Revenue Regulations ('RR") No. 16-2005 states:

SEC. 4.106-5. Zero-Rated Sales of Goods or Properties.- xxx The following sales by VAT -registered persons shall be subject to zero percent (0%) rate:

XXX

XXX

XXX

(c) 'Sales to Persons or Entities Deemed Tax-exempt under Special Law or International Agreement'. - Sales of goods or property to persons or entities who are tax-exempt under special laws, e.g. sales to enterprises duly registered and accredited with the Subic Bay Metropolitan Authority (SBMA) pursuant to R.A. No. 7227, sales to enterprises duly registered and accredited with the Philippine Economic Zone Authority (PEZA) or international agreements to which the Philippines is signatory, such as, Asian Development Bank (ADB), International Rice Research Institute (IRRI), etc., shall be effectively subject to VAT at zero-rate.

It is clear from the foregoing that the sales of goods to entities registered with PEZA and SBMA are subject to VAT at zero percent (0%) rate.

Page 13 o£23 In its amended Quarterly VAT Return for the znct quarter of TY 2013,61 petitioner declared VATable sales, its corresponding output VAT, as well as zero-rated sales, as follows:

Vatable Sales/Receipts

Php 5,500,930.3462

Output VAT

660,111.6463 Zero-Rated Sales j Receipts 24,781,862.3464 To prove that its clients are duly registered with PEZA and SBMA, petitioner submitted the letter of PEZA Director General Lilia B. De Lima dated February 16, 2016 addressed to CCI President Mr. Cyrus S. Chung, confirming the issuance of VAT zero-rating certifications to the following petitioner's clients/ purchasers:65

NAME OF ENTERPRISE

1 Alpha Techno Toolings Inc.

2 Applied Machining Corp.

3 Cebu AOI Development Tech. Corp.

4 Citizen Machinery Philippines, Inc.

5 Claymount Assemblies Phils. Inc.

6 Daitoh Precisions, Inc.

7 Daiwa Seiko Phils. Corp.

8 Delfingen Ph-Filipinas, Inc Formerly Sofandou (Phils.) Inc.

9 Delta Design Phils. LLC 10

E N Corporation

11 Exas Phils. Inc.

12

Famous Secret Precision Machining

13

Fatec Corporation

14 Ferusche Stainless Inc.

15 Firstec Metallics, Inc.

16 Fujitsu Die-Tech Corp. of the Phils.

17 Gunma Gohkin Phil. Corp.

18 Harada Automotive Antenna Phils. Inc.

Formerly Nippon Antenna Phils. Inc.

19 Hitachi Industrial Machinery Phils. Corp.

20 Honda Parts Manufacturing Corp.

21 Imasen Phil. Manufacturing Corp.

22

Ina Micro Opto Corporation

23 JFS Precision Tech. Corp.

24 Knowles Electronics Phils. Corp.

25 Kodachi Seiki Philis. Inc.

26 Laguna AutoParts Manufacturing Corp.

27 Laguna Metts Corp.

28 Makoto Metal Tech. Inc.

61 Records, Vol. 1, Exhibit "P-19-B," p. 401. 62 Id., line 15A, p. 401.

63 Id., line 15B, p. 401.

64 Id., line 17, p. 401.

65 Id., Vol. 1, Exhibit "P-6," pp. 179-185. VAT CERT. NO.

VAT CERT. DATE 730

17-Jan-13

939

28-Jan-13

1636

24-May-13

97

11-Dec-12

454

07-Jan-13

1578

22-Apr-13

448

07-Jan-13

1569

18-Apr-13

782

18-Jan-13

1259

15-Feb-13

1358

27-Feb-13

362

03-Jan-13

1073

01-Feb-13

1658

05-Jun-13

14

04-Dec-12

450

07-Jan-13

313

28-Dec-12

1173

06-Feb-13

229

12-Dec-12

121

13-Dec-12

633

15-Jan-13

1367

01-Mar-13

1732

09-Jul-13

968

28-Jan-13

1459

13-Mar-13

79

10-Dec-12

266

26-Dec-12

167

17-Dec-12

29

Manufacturing Automation Solutions

1694

27-Jun-13

30 Meinan Phils. Inc.

734

17-Jan-13

31 Menima Casting Products Inc.

264

26-Dec-12

32 Micro Mechanics Tech. International Inc.

1413

08-Mar-13

33 Micron Precision Phils. Inc.

839

21-Jan-13

34 MI<Pinc.

887

23-Jan-13

35 MTE Technology Inc.

789

18-Jan-13

36 Nakashima Phils. Corp.

Formerly Mikado Phils. Corp.

1032

30-Jan-13

37 New Electronics System Co. Inc.

431

07-Jan-13

38 Nidec Phils. Corp.

428

07-Jan-13

39 Nidec Precision Phils. Corp.

443

07-Jan-13

40 Nuvali Steel Processing Center Inc.

1747

15-Jul-13

41 Orbis Precision Tech. Inc.

306

28-Dec-12

42 Parts Phils. Inc.

1263

18-Feb-13

43 Penta Technological Products Inc.

747

17-Jan-13

44 Philippine Kenko Corp.

1552

12-Apr-13

45 Phil. Nagano Seiko Inc.

861

22-Jan-13

46 Phil. Precision Technology Inc.

1720

08-Jul-13

47 Philippine Sanitary Fittings Inc.

1054

13-Jan-13

48 Philippines TRC Inc.

879

22-Jan-13

49 Precise Parts Cooperation Inc.

1907 16-0ct-13 50 Precise Techno Inc.

1313

20-Feb-13

51 Prophile Sound Industries Inc.

165

17-Dec-12

52 Seo Jin Tronics Inc.

1709

02-Jul-13

53 Shimano Phils. Inc.

1979

18-Dec-13

54

Sinag Precision Manufacturing Laguna

1827

27-Aug-13

55 Sonion Philippines Inc.

1095

01-Feb-13

56 Suminac Philippines Inc.

355

02-Jan-13

57 Sunnelit Philippines Corp.

695

16-Jan-13

58 T &S Laser Solutions Inc.

30

05-Dec-12

59 Tamiya Phils. Inc.

1939

11-Nov-13

60 TMX Philippines Inc.

1001

29-Jan-13

61 Tsukuba Phil. Diecasting Corp.

718

17-Jan-13

62 Ure-Shi Technologies Inc.

2036 28-0ct-14 63 Vitalo Packaging International Inc.

395

04-Jan-13

64 Wacker Neuson Manila, Inc.

Formerly Wacker Machinery Phils. Inc.

383

04-Jan-13

65 Yutaka Manufacturing Phils. Inc.

769

18-Jan-13

Having been confirmed or certified by PEZA, only sales made to the above-mentioned clients shall qualify for VAT zero-rating, provided that the evidence66 presented complies with the invoicing requirements, pursuant to Section 1167 of Republic Act (RA") No. 9337, amending Section 113 of the 1997 NIRC.

66 !CPA Report, FOE Green Folder 2 of3, Exhibit "P-9" series; Box 1, Exhibit "P-44" series. 67 SEC. 11 Section 113 of the same code, as amended, is hereby further amended to read as follows: "SEC. 113. Invoicing and Accounting Requirements for VAT-Registered Persons. - (A) Invoicing Requirements. - A VAT -registered person shall issue:

(1) A VAT invoice for every sale, barter or exchange of goods or properties; and

(2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services.

(B) Information Contained in the VAT Invoice or VAT Official Receipt. - The following information shall be indicated in the VAT invoice or VAT official receipt: (

The Court-commissioned ICPA noted that zero-rated sales amounting to Php231,288.24 were attributable to out-of-period sales, to discrepancy on the figures reported vis-a-vis the amount on sales invoice, and to other factors for which he was not able to fully account.68 Hence, the Court disallows the said zero-rated sales. Further study of the sales invoices issued by petitioner to the following customers/ clients reveal that VAT zero-rating certifications were not issued by PEZA, SBMA, or BOI. Thus, zero-rated sales amounting to Php1,180,652.95 is also disallowed, to wit: INV.NO.

CUSTOMER'S NAME

AMOUNT

EXHIBIT

1062

Silan Technologies Corporation

Php

1,010.00

P-44-11

1072

Turu Santechno Corporation

35.00

P-44-19

1073

Turu Santechno Corporation

26,800.00

P-44-20

1128 Histotech Precision Inc.

3,500.00

P-44-52

1226

Turu Santechno Corporation

2,800.00

P-44-105

1243

Silan Technologies Corporation

2,400.00

P-44-107

1261

Polarmarine Incorporated

1,187.50

P-44-118

1264

Polarmarine Incorporated

27,000.00

P-44-121

1278

Polarmarine Incorporated

22,290.00

P-44-131

1279

Polarmarine Incorporated

40,680.00

P-44-132

1328

Silan Technologies Corporation

1,440.00

P-44-163

1348

Silan Technologies Corporation

1,320.00

P-44-174

1376

Polarmarine Incorporated

3,100.00

P-44-193

(1) A statement that the seller is a VAT-registered person, followed by his taxpayer's identification number (TIN);

(2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax: Provided, That:

(a) The amount of the tax shall be shown as a separate item in the invoice or receipt;

(b) If the sale is exempt from value-added tax, the term "VAT-exempt sale" shall be written or printed prominently on the invoice or receipt;

(c) If the sale is subject to zero percent (0%) value-added tax, the term "zero-rated sale" shall be written or printed prominently on the invoice or receipt;

(d) If the sale involves goods, properties or services some of which are subject to and some of which are VAT zero-rated or VAT -exempt, the invoice or receipt shall clearly indicate the breakdown of the sale price between its taxable, exempt and zero-rated components, and the calculation of the value-added tax on each portion of the sale shall be shown on the invoice or receipt: Provided, That the seller may issue separate invoices or receipts for the taxable, exempt, and zero-rated components of the sale.

(3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service; and

(4) In the case of sales in the amount of one thousand pesos (P1,000) or more where the sale or transfer is made to a VAT-registered person, the name, business style, if any, address and taxpayer identification number (TIN) of the purchaser, customer or client."

68 ICPA Report, FOE Green Folder 1 of3, Exhibit "P-29," par. G, p. 10. !

1555 1731 1747 1748 1749 1750 1752 1797 1955 2021 2152 2153 2258 2337 2341 2342 2361 2410 2431 2472 1414 1598 1880 1881 2040 2225

Turu Santechno Corporation

Turu Santechno Corporation

Polarmarine Incorporated

Polarmarine Incorporated

Polarmarine Incorporated

Polarmarine Incorporated

Polarmarine Incorporated

Turu Santechno Corporation

Turu Santechno Corporation

Turu Santechno Corporation

Polarmarine Incorporated

Polarmarine Incorporated

Citizen Machinery_ Phils. Inc.

Polarmarine Incorporated

Polarmarine Incorporated

Polarmarine Incorporated

Silan Technologies Corporation

Ebara Benguet Inc.

Turu Santechno Corporation

Multiplast Corporation

Premtol E.K.

Mr. Kevin Tan Premtol E.K.

Premtol E.K.

Premtol E.K.

Premtol E.K.

TOTAL

5,600.00

P-44-301

11,382.00

P-44-397

5,400.00

P-44-408

1,120.00

P-44-409

5,800.00

P-44-410

4,100.00

P-44-411

37,350.00

P-44-412

400.00

P-44-443

1,440.00

P-44-533

5,600.00

P-44-575

42,800.00

P-44-659

5,800.00

P-44-660

9,500.00

P-44-718

15,750.00

P-44-766

4,500.00

P-44-767

58,600.00

P-44-768

2,400.00

P-44-782

19,500.00

P-44-809

3,300.00

P-44-820

13,050.00

P-44-845

146,156.57

P-44-871

48,434.66

P-44-872

99,271.17

P-44-873

235,050.38

P-44-874

44,429.97

P-44-875

220,355.70

P-44-876

PHP1,180,652.95 After a study of the documents submitted, the Court finds that out of the Php24,781,862.34 zero-rated sales declared per VAT Return filed for the second quarter of TY 2013, only the amount of Php23,369,921.15 qualifies for VAT zero-rating, computed as follows: Zero-rated Sales per BIR Form No.2550-Q

Disallowances:

Per ICPA findings

Php

Per Court verification

VALID ZERO-RATED SALES

Petitioner

had input taxes attributable to zero-rated sales.

Php 24,781,862.34 231,288.24 1,180,652.95 Php 1,411,941.19 PHP 23,369,921.15 Having resolved that petitioner had valid VAT zero-rated sales for the second quarter of TY 2013 in the amount of Php23,369,921.15, the Court proceeds to determine the amount of input VAT attributable thereto.

J

In its Quarterly VAT Return for the second quarter TY 2013,69 petitioner declared input VAT of Php2,791,566.92 on its domestic purchases and importation of goods other than capital goods, of which the amount of Php2,131,455.28 is the subject claim, as shown below:

Input VAT:

Domestic purchases of goods other than cap. Goods Importation of goods other than cap. Goods Total input VAT

Less: Output VAT

INPUTVAT PERCLAIM

Php

971,257.68 1,820,309.24 Php 2,791,566.92 660,111.64 PHP 2,131,455.28 In support of its input VAT on current purchases/importations of goods amounting to Php2,791,566.92, petitioner presented schedule of purchases,70 various official receipts ("ORs") and invoices,n schedule of importation,72 Statement and Receipts of Duties Collected on Informal Entry ("SRDCIE"), Import Entry Internal Revenue Declarations ("IEIRDs"), and Bureau of Customs ("BOC") 0Rs73 issued by its suppliers, which were all examined by the Court- commissioned ICP A, who noted the following: Input tax properly supported

Input Tax:

Not under CCI' s complete name Without or incomplete address Without of incorrect TIN

Unaccounted

TOTAL INPUT VAT

Php

Php

25,813.2175 482,487.8176 10,039.5377 Php

PHP

2,272,554.9974 518,340.55 671.3978 2,791,566.9379 The above-noted exceptions found by the ICP A in the aggregate amount of Php519,011.94 (Php518,340.55 plus Php671.39) are disallowed for not being properly substantiated by VAT invoices or ORs, as prescribed under Sections 110(A) and 113(A)(B) of the 1997 69 Records, Vol. 1, Exhibit "P-19-B," pp. 401-402. 70 Id., Vol. 2, Exhibit "P-10," series, pp. 856-873. 71 ICPA Report, FOE Green Folder 3 of3, Exhibit "P-11" series, also referred as Exhibits "P-45" to "P- 48" series.

72 Records, Vol. 2, Exhibit "P-24," series, pp. 753-756. 73 Box 1, Exhibit "P-25" series.

74 ICPA Report, FOE Green Folder 1 of1, Exhibit "P-29," Table 5. 75 Id., Table 6.

76 Id., Table 7.

rl 77 Id., Table 8.

78 Id., Table 9, p. 12.

79 Rounding off difference of Php0.01.

NIRC, in relation to Sections 4.110-2, 4.110-8 and 4.113-1 of RR No. 16- 05.

Further verification of the ICP A Report, together with the supporting documents, reveals that the additional input VAT of Php30,692.38 shall likewise be disallowed for the reasons stated hereunder:

EXHIBIT

SUPPLIER'S NAME

INPUT TAX

REASON

P-45-1

Best Price

Php

267.86 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-2

Besteel Merchandising

81.75 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-3

Besteel Merchandising

196.87 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-4

Besteel Merchandising

63.00 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-5

ChamSamco

79.50 VAT not Separately Indicated

P-45-6

ChamSamco

317.25 VAT not Separately Indicated

P-45-49

GYH Industrial

1,025.78 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-67

Best Price

1,253.57 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-68

Best Price

107.89 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-69

Best Price

124.18 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-70

Best Price

274.82 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-71

Best Price

274.82 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-72

Besteel Merchandising

37.35 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-73

Besteel Merchandising

77.55 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-74

Besteel Merchandising

64.80 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-75

Besteel Merchandising

375.00 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-76

Besteel Merchandising

198.45 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-77

Besteel Merchandising

461.25 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-78

Besteel Merchandising

253.33 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-79

Besteel Merchandising

77.85 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-80

Besteel Merchandising

174.37 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-110

Grind Tech Abrasives

334.80 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-111

Grind Tech Abrasives

56.25 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-112

Grind Tech Abrasives

858.75 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-113

Grind Tech Abrasives

291.45 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-114

Grind Tech Abrasives

941.25 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-115

Grind Tech Abrasives

45.00 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-116

GYH Industrial

416.87 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-117

GYH Industrial

108.00 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-118

GYH Industrial

171.45 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier

P-45-119

GYH Industrial

965.25 With noted alterations or additions in the supporting Invoice without

I

P-45-120

GYH Industrial

P-45-121

GYH Industrial

P-45-122

Iris Industrial

P-45-123

Iris Industrial

P-45-124

Iris Industrial

P-45-126

LimYeeWan

P-45-127

LimYeeWan

P-45-128

LimYeeWan

P-45-131

Limhuaco Metal

P-45-132

Limhuaco Metal

P-45-133

MJS Appliance

P-45-134

MJS Appliance

P-45-135

Office Master

P-45-138

Proton Plastic Packaging

P-45-143

Screw City Hardware

P-45-144

Screw City Hardware

P-45-145

Screw City Hardware

P-45-146

Serkline Trading

P-45-147

Serkline Trading

P-45-148

Simplex Industrial

P-45-149

Success Lightings

P-45-157

Best Price Multi Sales

P-45-158

Best Price Multi Sales

P-45-159

Besteel Merchandising

P-45-160

Besteel Merchandising

P-45-161

Besteel Merchandising

P-45-162

Besteel Merchandising

P-45-163

Besteel Merchandising

P-45-164

Besteel Merchandising

P-45-165

Besteel Merchandising

P-45-166

Besteel Merchandising

TOTAL

countersignature of the authorized representative of the supplier 458.70 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 189.38 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 803.57 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 803.57 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 803.57 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 38.68 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 25.45 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 22.18 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 209.25 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 202.18 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 7,500.00 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 3,750.00 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 2,098.40 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 892.86 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 9.75 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 27.60 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 191.23 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 76.61 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 64.29 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 3.21 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 113.93 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 137.41 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 1,253.57 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 31.14 With noted alterations or additions in the supporting Invoice without countersignature of the authorized reJ>resentative of the supplier 89.89 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 51.30 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 36.93 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 335.52 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 178.65 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 81.00 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier 236.25 With noted alterations or additions in the supporting Invoice without countersignature of the authorized representative of the supplier PHP30,692.38 Thus, out of petitioner's total reported input VAT on current purchases/importations of Php2,791,566.92 for the second quarter of 2013, only the amount of Php2,241,862.60 represents its valid input VAT, as computed below:

(

Input VAT per Return

Less: Disallowances

Php 2,791,566.92 Per ICPA findings Per Court verification

VALID INPUT VAT

Php 519,011.94 30,692.38

Php

549,704.32 PHP 2,241,862.60 However, a portion of the Php2,241,862.60 shall be applied against the reported output VAT liability of Php660,111.64.80 Consequently, only the remaining input VAT of Php1,581,750.96 can be attributed to the entire zero-rated sales amounting to Php24,781,862.34 and only the input VAT of Php1,491,631.04 is attributable to the valid zero-rated sales of Php23,369,921.15, computed as follows:

Valid Input VAT

Less: Output VAT

Excess Input VAT

Multiply by Percent of Zero-rated Sales to Total Sales:

Valid Zero-Rated Sales

23,369,921.15

Php

2,241,862.60 660,111.64

Php

1,581,750.96

Total Zero-Rated Sales

24,781,862.34 94.3025218% EXCESS INPUT VAT ATTRIBUT-A..,....B.,--LE::::-::--TO-:::-'::-Z=E.-:...RO-=--=-R-A--T=E=D-=S:--A-:-L=Es.,----..,....P=H=P-1-,4-:9-1,-63--1-.0--i4 Petitioner's input taxes are more than enough to cover output taxes.

However, per evidence actually admitted, excess input taxes were carried over to succeeding quarters.

As presented in the preceding computation, petitioner's excess input taxes were more than enough to cover output tax liability. However, an examination of the Quarterly VAT Returns reveals that the excess input VAT in the subject claim was carried to the succeeding periods but failed to provide evidence that it was deducted as "VAT Refund/TCC Claimed."

As alleged by petitioner, the claimed input VAT remained unutilized until it was deducted as "VAT Refund/TCC Claimed" in its Quarterly VAT Return for the second quarter of TY 2015.81 Similarly, the ICPA also noted that input taxes for the 2nd quarter of TY 80 Records, Vol. 1, Exhibit "P-19-B," line 19B, p. 401. Bl Id., Vol. 2, petitioner's Memorandum, par. 52, p. 909. (

2013 in the amount of Php2,943,224.19 was deducted as "VAT Refund/TCC Claimed" in the 2nd quarter of TY 2015.82 However, a scrutiny of the original return (BIR Form No. 2550- Q) for the 2nd quarter of TY 201583 reveals that the amount deducted as "VAT Refund/TCC Claimed" was Php2,194,583.72.84 This amount is the excess input tax for the 3RD QUARTER of TY 2013, and not for the claim period of 2ND QUARTER of TY 2013, for reference: Input VAT on goods other than capital goods

Input VAT on Importation

Total

Less: Output VAT

Ph p 586,650.5885 2,662,153.0086 Php 3,248,803.58 1,054,219.8687 EXCESS INPUT FOR THE 3RD QUARTER OF TY 2013 PHP 2,194,583. 72 Subsequently, petitioner amended its BIR Form No. 2550-Q for the 2nd quarter of 2015 on February 12,2016, and indicated an amount deducted as "VAT Refund/TCC Claimed" of Php3,653,420.1288, which can be reconciled as follows:

2ND QTR. OF 2015

Input VAT on:

Cap. Goods not exceeding 1M

Php

7,714.29 Goods other than cap. Goods 443,770.31

Importation of Goods

2,231,498.00

Others

29,130.04

Total

Php2,712,112.64 Input Vat on Cap. Good from Previous Qtr.

Php 498,010.62 Input Vat on Cap. Good deferred to succeeding Qtr. 465,878.46 rhr 32,132.16

Total

Php2,744,244.80

Less:

Output VAT

Php1,216,431.90 Input tax on sale to government closed to expense 6,060.56 Php1,222,492.46 EXCESS INPUT TAX FOR THE 2ND QTR. OF 2015 2ND QTR. OF 2013

Input VAT on:

Goods other than cap. Goods Php 971,257.68

Importation of Goods

1,820,309.24

Total

Php2,791,566.92

Less:

Output VAT

Php 660,111.64 EXCESS INPUT TAX FOR THE 2ND QTR OF 2013 (SUBJECT CLAIM) DEDUCTED AS "VAT REFUND/TCC CLAIMED" IN THE 2ND QTR OF CY 2015 82 ICPA Report, FOE Green Folder 1 of3, Exhibit "P-29," par. A, p. 12. 83 Records, Vol. 2, Exhibit "P-18," p. 725. 84 Records, Vol. 2, Exhibit "P-18," line 230, p. 725. 85 Records, Vol. 1, Exhibit "P-19-C," line 21F, p. 403. 86 Records, Vol. 1, Exhibit "P-19-C," line 21H, p. 403. ( 87Records, Vol. 1, Exhibit "P-19-C," line 19B, p. 403. BB Green Folder, Exhibit P-43".

89 Difference of Php212.50.

Php1,521,752.34 2,131,455.28 3,653,207.6289

However, this document (amended BIR Form 2550-Q for the 2nd quarter of 2015) was not formally offered by petitioner and was never admitted by the Court, thus, cannot be given evidentiary value. Consequently, per evidence actually offered and admitted, the subject claim was carried-over to the succeeding periods.

WHEREFORE, premises considered, the instant Petition for Review is hereby DENIED for lack of merit.

WE CONCUR:

LOVELL~. BAUTISTA

Associate Justice

~ . .4JA. ~·-- MA. BELEN M. RINGPIS-LIBAN

Associate Justice

ATTESTATION

I attest that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division.

LOVEL-~ BAUTISTA

Ass~~te Justice

Chairperson

CERTIFICATION

Pursuant to Article VIII, Section 13 of the Constitution, and the Division Chairperson's Attestation, it is hereby certified that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court.

Presiding Justice