Customer-supplied drawings and designs are excluded from assessable value for manufactured goods under settled valuation principles.

Where goods are manufactured to customer specifications using drawings and designs supplied free of cost by the customer, the cost of those drawings and designs is not includible in the assessable value of the manufactured goods. The Tribunal followed the settled co-ordinate Bench view and earlier decisions supporting that principle, and found no basis to depart from it. The Revenue's challenge therefore failed.

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Issues: Whether the cost of drawings and designs supplied by customers free of cost is includible in the assessable value of the manufactured goods.

Analysis: The goods were manufactured to customers' specifications using drawings and designs supplied by the customers. The Tribunal followed the co-ordinate Bench view that where drawings are supplied by the customer for manufacture of the product, the cost thereof is not includible in assessable value. The earlier decisions relied upon by the Commissioner (Appeals) supported the same principle, and the Revenue showed no reason to depart from that settled view.

Conclusion: The cost of drawings and designs incurred by the customers is not includible in the assessable value; the Revenue's appeals fail.

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