TMI Blog2014 (8) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... owever, we find that the reasoning adopted is flawed as Import Parity Price is not an artificially fixed price. It is an actual price at the time and place of import which is also place for the sales effected by the Refinery or OMC to another OMC. To say that such a price is an artificially fixed notional value is completely contrary to facts. Import price cannot be influenced by the marketing companies situated in India. Therefore, there is a major flaw in the reasoning adopted in the order relied upon by the Revenue - import price agreed between one OMC and another based on the MOU reached between them can be considered as a transaction value and such a finding was also be upheld in the case of HPCL [2005 (2) TMI 357 - CESTAT, BANGALORE] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration other than price in view of the mutuality of assistance to be provided by the OMCs amongst themselves. He relies on the decision of the Tribunal in the case of Bharat Petroleum Corporation Ltd. Vs. Commissioner of Central Excise, Nashik - 2009 (242) ELT 358 (Tri-Mum), wherein it was held that reciprocal arrangement between the OMCs is a factor influencing the price and, therefore, the sale price of the goods to OMCs could not be considered as a sole consideration for sale and the sale price to independent buyers should have been adopted for the discharge of excise duty. 3. The learned Counsel for the respondent assessee submits that a identical issue came up for consideration before this Tribunal in the case of HPCL Vs. Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n particular, we have noted that para 19 of the BCPL case order relied upon by the Revenue, it has been held that IPP based price cannot be considered as transaction value as it was an artificially fixed notional value. In such an agreement, price was definitely not the sole consideration for sale. It is based on this reasoning, it was held in the BPCL case that sale price to OMC cannot be accepted as sole consideration for sale. However, we find that the reasoning adopted is flawed as Import Parity Price is not an artificially fixed price. It is an actual price at the time and place of import which is also place for the sales effected by the Refinery or OMC to another OMC. To say that such a price is an artificially fixed notional value is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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