Valuation - inclusion of notional cost of drawings and designs ...

Tribunal Excludes Free Drawings from Assessable Value; Vendors' Appeals Allowed for Parts Manufacturing.

March 16, 2024

Case Laws     Central Excise     AT

Valuation - inclusion of notional cost of drawings and designs supplied free of cost by Maruti to the vendors in the assessable value of parts or components manufactured by vendors - The Tribunal held that the notional cost of drawings and designs supplied free of cost by Maruti could not be included in the assessable value of parts and components manufactured by the vendors. It was observed that these specifications were provided at the 'Request for Quotation' stage for the purpose of short-listing the vendors and were not used in the actual production of the parts or components. The detailed drawings and designs prepared by the vendors, which were essential for the production, were based on their own development and technology support from other companies. - Tribunal allowed all the appeals filed by the vendors.

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