https://www.taxtmi.com/caselaws?id=450905 CESTAT NEW DELHI held that notional cost of drawings and designs supplied free by a motor vehicle manufacturer to component vendors cannot be included in assessable value for central excise duty purposes. The court distinguished the case from precedents, noting that specifications were provided at quotation stage merely as layout requirements, while vendors prepared their own detailed drawings containing 23 sub-components not referenced in original specifications. Since specification drawings were neither used nor necessary for production, Rule 6 of 2000 Valuation Rules was not applicable. The demand for differential central excise duty was set aside and appeals were allowed. en-us Tue, 12 Mar 2024 00:00:00 +0530 Thu, 14 Mar 2024 12:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450905 CESTAT NEW DELHI held that notional cost of drawings and designs supplied free by a motor vehicle manufacturer to component vendors cannot be included in assessable value for central excise duty purposes. The court distinguished the case from precedents, noting that specifications were provided at quotation stage merely as layout requirements, while vendors prepared their own detailed drawings containing 23 sub-components not referenced in original specifications. Since specification drawings were neither used nor necessary for production, Rule 6 of 2000 Valuation Rules was not applicable. The demand for differential central excise duty was set aside and appeals were allowed. Case-Laws Central Excise Tue, 12 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450905