Tribunal upholds taxpayer's contention of exclusion
of indirect expenses for margin computation; verify data before
considering a company as a comparable.
Facts of the case
Swarovski India Pvt. Ltd. ("the taxpayer") is a wholly
owned subsidiary of Swarovski International Holdings AG (FIH) which
is globally famous for its Crystal and related products. The
taxpayer is operating as a 100% EOU in Pune and engaged in job work
coating raw material beads and polishing the sale to its associated
enterprises ("AEs") and domestic unit operating in New
Delhi carried out import and sale of crystal and related
products.
During the year under consideration, the taxpayer, being the
sole distributer of the products of its AEs in India, sold goods
manufactured by its AEs to the customers. For benchmarking its
international transaction pertaining to "purchase of
consumables and job work charges received", the taxpayer
selected Cost Plus Method ("CPM") and computed gross
mark-up
