TMI Blog2011 (8) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... e's invoice rate and the average Customs rate at Kandla Port is nominal. The difference goes beyond the permissible 5% range only when the TPO has adopted the average of the tariff prices at Kandla Port. In these types of bulk purchases and sales, it is always better to compare the price of individual consignment rather than on a compromise of average price. - ITA No. 1610 (Mds.) of 2010 - - - Dated:- 24-8-2011 - Dr. SHRI O.K. NARAYANAN, AND SHRI HARI OM MARATHA, JJ. Represented by: Shri Ashit Mehta and Shri Gyaneshwar Y. Kataram for the Appellant. Shri T.N. Betgiri for the Respondent. Dr. Shri O.K. Narayanan, Vice-President - This appeal is filed by the assessee. It is a transfer pricing case. The appeal is directed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also stated that the rates of oil published by Solvent Extractors Association of India in relation to degummed soya bean oil could also be well relied on. After considering the functional, asset utilization and risk analysis, the TPO has observed that the assessee did not suffer from any product liability, risk or intellectual property risk and no foreign exchange rate fluctuation risk. Over all, it was the view of the TPO that the assessee did not have any significant market risk. 5. On comparison of the prices, the TPO has observed that the rate paid by the assessee was 572 US$ per metric ton whereas the tariff rate by the Customs at Kandla Port on an average worked out at 504.61 US$ per metric ton. The TPO has taken the Customs rate a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable on the day of contract. Once the contract is entered into, the goods are moved from export destination to Kandla Port which is the import destination. Obviously, there is a time gap between the contract date and the date of entry. Because of this time gap between the contract date and entry date, there would be price fluctuation and the tariff rate furnished by the Customs need not be comparable to the price reflected in the import invoices. 8. As rightly argued by the assessee-company, instead of comparing the price with the Customs tariff rate on the date of entry into the port, the TPO should have compared the price declared by the assessee with the Customs tariff rate at Kandla Port as it is stood on the day of contract of sal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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