Price should be of supply similar in all respects :
The price should be at same commercial level. e.g. whole price and retail proce or OE price and spare parts price cannot be compared.
Selling price of 100 Kg of goods to an unrelated buyer in India cannot be considered for comparison of sale price of sale of 10,000 Kg of similar goods to related person in India – same view in – CC v. Hewlett Packard Ltd. 1999 (108) ELT 221 = 29 RLT 290 (CEGAT) * Stahl India v. CC 2005 (184) ELT 408 (CESTAT).
In Volvo India v. CC 2005 (180) ELT 489 (CESTAT), it has been held that even if assessee and exporter are related persons, prices of OE (Original Equipment) parts cannot be taken to level of price of spare parts, unless department after investigation comes with evidence to show that relationship has influenced the price.
In Mirah Exports P Ltd. v. CC 1998 AIR SCW 687 = AIR 1998 SC 928 =98 ELT 3 (SC), it was held that giving quantity discount for higher quantity is not unusual and merely because such a discount has been given during negotiations, it cannot be said that there is any under-valuation.