Technical Specifications and Drawings Shared During RFQ Process Not Additional Consideration for Excise Duty Valuation

CESTAT determined specifications, drawings and designs supplied by Company M during request for quotations (RFQ) do not constitute additional consideration for sale under Central Excise Act and Valuation Rules. The Tribunal reasoned that for elements to qualify as consideration under Contract Act, they must be provided at promisor's desire, which wasn't the case here. The documents were merely articulation of Company M's requirements to elicit proposals, not consideration flowing from promisee to promisor. Following precedent in similar cases, CESTAT held such technical documentation supplied free of cost cannot be included in assessable value for excise duty calculation. Appeal allowed with impugned order set aside. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X