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Spot Cargoes Purchased by Petronent lNG Ltd During FY 2008-09 Loading Port Supplier Ship Unloading MMBTU Price Booking LC Date USD/ Date* Required MMBTU Ras Laffan, Qatar RasGas AI Thakhira 11/5/2008 3,262,720.00 13,3000 24/4/2008 Y Arzew, Algeria Sonatrach M Didouche 15/06/08 2,854,894.10 13,9500 28/5/2008 Y Idku Port, Egypt Gaz De Gasleys 11/10/2008 3,286,422.00 18,5000 17/09/2008 Y France I.T.A. Nos. 1056/Ahd/ 2014 Assessment year: 2009-10 Arzew, Algeria Sonatrach Galea 20/10/08 3,190,940,23 16,0000 4/10/2008 Y Withnell Bay, North West AI Thakhira 26/10/2008 3,362,960.00 17,5000 10/10/2008 Y Australia Shelf, Australis Qalhat, Oman Qalhat Ibara LNG 7/11/2008 3,346,090.00 13,2500 4/11/2008 Y Ras Laffan, Qatar RasGas MRL 22/11/08 3,092,090.00 12,3000 5/11/2008 Y Point Fortin T&T BG Blue Sky 17/12/08 3,087,330.00 11,9000 25/11/2008 Y Bonny, Nigeria BG LNG Akwa 3/1/2009 2,724,260.00 11,9000 25/11/2008 Y Ibom Bintulu, Malaysia BP Seri 11/3/2009 3,274,231.00 6,2500 3/3/2009 Y Angkasa Point Fortin T&T BP Brit 29/03/09 2,779,225.03 5,8000 12/3/2009 Y Innovator *Date on which purchase of spot cargo is confirmed.

15. The above comparables have been used to examine the following actual import transactions entered into by the assessee:

Annexure - Details of purchases made by HLPL during FY 2008-09 S.No. Name of Source Date of Date of Price Net Qty. Value in Value in Arrival Unloaded books books (INR) Ship Confirmat- USD (USD) ion notice 1 Al Thakira Qatar 2-Apr-08 11-Apr-08 13.98 3,264,240 45,634,075 1,845,898,342 2 Galea Algeria 14-Apr-08 23-Apr-08 13.98 3,138,060 43,870,079 1,774,544,687 3 Excel Abu Dhabi, 17-Apr-08 24 May-08 13.42 3,221,030 43,226,223 1,750,662,015 UAE 4 Arctic Nigeria 21-Apr-08 20-May-08 13.42 3,196,130 42,529,725 1,722,453,846 Lady 5 LNG Nigeria 23-Apr-08 1-May-08 13.35 2,829,290 37,771,022 1,527,837,820 Finima 6 Excel Abu Dhabi, 28-Apr-08 15-May-08 13.40 2,069,420 27,730,228 1,123,074,234 UAE 7 Simaisma Qatar 5-May-08 9-May-08 13.48 3,262,990 43,985,105 1,781,396,761 8 Gracilis Equatorial 13-May-08 15-Jun-08 13.59 3,016,290 40,991,381 1,766,728,525 Guinea 9 Galea Algeria 22 May-08 30-May-08 13.59 3,150,350 42,813,257 1,733,936,888 10 Mithane Idku, Egypt 2-July-08 28-Jul-08 18.80 3,178,840 59,762,192 2,581,726,694 Shirley Elisabeth 11 Berge Algeria 7-July-08 22-Jul-08 16.99 3,113,000 52,889,870 2,284,842,384 Arzew 12 Maesk Guinea 15-July-08 18-Sep-08 20.45 3,422,600 69,992,170 3,062,157,438 Methane 13 Arctic Norway 21-July-08 13-Aug-08 19.55 3,272,270 63,972,879 2,722,045,980 Lady 14 Seri Alam Guinea 23-July-08 24-Sep-08 19.55 3,058,230 59,788,397 2,615,742,347 15 Seri Alam Nigeria 28-July-08 8-Aug-08 18.70 3,166,660 59,216,542 2,519,663,862 16 Berge Algeria 13-Aug-08 22-Aug-08 20.37 3,118,180 63,517,327 2,702,662,247 Arzew 17 Seri Guinea 18-Aug-08 12-Oct-08 20.50 3,158,740 64,754,170 3,027,257,448 Bijasksana 18 Borno Nigeria 26-Aug-08 30-Aug-08 20.50 3,265,070 66,933,935 2,848,038,934 19 Seri Belgium 4-Sep-08 10-Sep-08 20.00 3,234,050 64,681,000 2,829,793,750 Begawan I.T.A. Nos. 1056/Ahd/ 2014 Assessment year: 2009-10 20 Salalah Oman 21-Sep-08 2-Oct-08 19.95 3,397,770 67,785,512 2,965,616,128 LNG 21 Gallina Nigeria 20-Oct-08 29-Oct-08 17.20 2,781,230 47,837,156 2,407,644,061 22 Granosa Western 31-Dec-08 09-Jan-09 9.06 3,319,130 30,071,318 1,449,437,518 Australia 23 Sohar LNG Oman 26-Feb-09 3-Mar-09 7.15 3,162,030 22,608,515 1,137,208,279 24 British Trinidad, 6-Mar-09 31-Mar-09 5.65 3,153,020 17,814,563 869,072,519 Ruby W.I. 25 Al Qatar 10-Mar-09 15-Mar-09 6.00 3,487,040 20,922,240 1,052,388,672 Marrouna 26 Al Hamla Qatar 23-Mar-09 28-Mar-09 4.50 2,152,450 9,686,025 487,207,058
I.T.A. Nos. 1056/Ahd/ 2014 Assessment year: 2009-10 AY HLPL PLL AY Source Booking Price Source Booking Price (USD) 2007-08 date (USD) date Qatar 12-09-06 9.95 Egypt 04-09-06 8.60 Egypt 15-09-06 9.37 Egypt 04-09-06 8.60 Malaysia 03-01-07 9.30 Qatar 28-12-06 8.30 AY Source Booking Price Source Booking Price 2008-09 Date (USD) Date (USD) Oman 18-01-08 16.75 Qatar 29-01-08 15 Oman 31-01-08 16.45 Qatar 29-01-08 15 AY Source Booking Price Source Booking Price 2009-10 date (USD) date (USD) Oman 21-09-08 19.95 Egypt 17-09-08 18.50 AY Source Booking Price Source Booking Price 2010-11 date (USD) date (USD) Russian 06-04-09 5 Egypt 13-04-09 4.8 Federation Withnell 25-05-09 3.87 Australia 22-05-09 3.50 Bay, WA Russian 02-06-09 3.87 Australia 22-05-09 3.50 Federation Guinea 02-06-09 4.20 Australia 22-05-09 3.50 Russian 25-08-09 5.15 Qatar 20-08-09 4.65 Federation Qatar 03-09-09 5.15 Qatar 01-09-09 4.70 Trinidad, 02-09-09 5.15 Qatar 01-09-09 4.70 W.I

36. We find nothing on record to substantiate the claim of the learned Departmental Representative that the PLL was charging separate fees for regasification. In our considered view, regasification is an integral part of assessee's trading activity as unpacking of a consignment to put the same in a saleable state and fit for transportation by the available mode. The process of regasification cannot be seen in isolation with the main activity carried on by the assessee. What has been sold by the assessee is regasified LNG (R-LNG) as is evident from the financial statements of the assessee. The business models of HLPL and PLL are similar in the sense that the entire cost, whether it is a long term or a short term contract, is passed on to the customer in India as no trader will keep the cost to itself including the foreign exchange fluctuation. To that extent, leaned Departmental Representative indeed seems to have erred in observing that in the case of PLL, the entire fuel cost including the exchange rate fluctuation is passed on to the customers, whereas the same is not the case of HLPL as it is a full risk distributor. In any case, as a plain look at the financial statements of PLL would show the PLL has booked, in its profit and loss account, foreign loss exchange loss separately to the tune of Rs 33 crores approximately, and thus it cannot be said that the PLL had passed on entire foreign exchange fluctuation risk to its customers. It has also been noted that sale to customers in India by both PLL as also the assesse is foreign currency (USD) denominated and, therefore, the foreign currency risk is a pass through costs for both HLPL and PLL to that extent. We have also noted, as pointed out by the learned counsel, that LNG Prices are floating in long term trade as well since they are generally linked to certain Oil exchange prices. As an example, it has been noted that PLL sourced LNG from Rasgas, Qatar under a 25 year SPA for which prices were linked to Japan Custom Cleared ("JCC") crude oil of US$ 20/bbl in the period from April 2004 to December 2008, and in the period from January 2009 to December 2013, LNG prices would I.T.A. Nos. 1056/Ahd/ 2014 Assessment year: 2009-10 gradually float in line with the specified formula, with prices fully indexed to the previous 12 month JCC from Jan 2014, subject to cap and floor price. It would thus follow that just because PLL has entered into long term contracts, it does not essentially follow that the prices will not be subjected to variations. In other words, even under long term contracts, the prices of the LNG are not to remain static, as has been assumed by the learned Departmental Representative. This is also not in dispute that the PLL has purchased the LNG under long term arrangements as also by way of these spot deals. In any case, as is opined in the expert opinion filed by the assessee. ""It is, infact, a misnomer to refer to the short-term LNG trade as a 'spot market," and "there is no spot market because no one is making a market, in the sense of providing liquidity and posting quotes in exchange for a buy-sell spread. As a matter of fact, as opined in the expert report, "short-term trade is a collection of bilateral deals that may cover a single cargo to many cargoes, over period ranging from a single month to over a year." In this view of the matter, we agree that the mere fact that PLL also has long term arrangements for purchases of LNG, it does not cease to be a valid comparable for this reason alone.