more in line with that of the American Courts. An
important consideration which has weighed with the Court for
holding that an administrative authority exercising ... this view are that the requirement of recording reasons would (i)
guarantee consideration by the authority; (ii) introduce clarity in
the decisions; and (iii) minimise
more in line with that of the American Courts. An
important consideration which has weighed with the Court for
holding that an administrative authority exercising ... this view are that the requirement of recording reasons
would (i) guarantee consideration by the authority; (ii) introduce
clarity in the decisions; and (iii) minimise
M/S. Gujarat Fluorochemicals Limited vs Vestas Wind Technology India Private ... on 1 April, 2019
account of guarantee given by the assessee to its
Associate Enterprise located at Singapore without any consideration.
20. As evident from the following observations ... quoted below:-
"Transfer pricing officer made adjustment in respect of guarantee commission
for pledging the shares of MPSEZ held by the appellant with ICICI
purchase contract or order, in addition to a predetermined guarantee
consideration. Again, an indication contra to the contention that the
non-resident was providing management
further has not been taken into consideration that
provision of guarantee is not covered under the transfer pricing regulations. It was
the case ... providing the performance guarantee and historically no customer
has invoked the performance guarantee given by the appellant till date.
Theperformance guarantee given by the appellant
guarantee commission from their
associate / subsidiary companies for providing corporate
2
ST/40042/2013
guarantee. It was further noticed that appellants have also
paid consideration ... present case, the assessee stood guarantee to their
associate / subsidiary companies for providing corporate
guarantee for a consideration which is taxable. Further, the
assessee paid
days from the date of the receipt of
the Upfront Consideration, then the Upfront Consideration will be
refunded to the plaintiffs without any interest ... Buyer). We are liable to pay the guarantee
amount or any part thereof under this Bank Guarantee only if SBI serves upon us
a written
appellant No.1 to furnish a Corporate Guarantee to the tune of '10% of
the sale consideration of the antenna in question ... application, the
quantification of the amounts of bank guarantee and
deposit is based upon the sale consideration derived
by the defendants. The ultimate expression
inadequately capitalized, none will guarantee financial obligations of such a
subsidiary. [Para 38]
v. The issuance of financial guarantee in favour of an entity, which ... risk assessment and provide security may
obtain a bank guarantee.
viii. The consideration for the issuance of bank guarantee, so far as a banker
