https://www.taxtmi.com/caselaws?id=766074 CESTAT NEW DELHI held that notional cost of specifications, drawings and designs supplied free by manufacturer to potential vendors cannot be included in assessable value of excise duty. The Tribunal ruled that items supplied by buyers to manufacturers before identifying potential sellers cannot constitute additional consideration for sale, as no contract of sale exists at that stage. Under Section 4 of Central Excise Act, 1944 and Rule 6 of Valuation Rules, additional consideration requires existing sale contract between parties. The specifications were merely layout dimensions necessary for manufacturing compatible parts, not consideration received by vendors. Appeals allowed, impugned order set aside. en-us Mon, 17 Feb 2025 00:00:00 +0530 Mon, 17 Feb 2025 14:17:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766074 CESTAT NEW DELHI held that notional cost of specifications, drawings and designs supplied free by manufacturer to potential vendors cannot be included in assessable value of excise duty. The Tribunal ruled that items supplied by buyers to manufacturers before identifying potential sellers cannot constitute additional consideration for sale, as no contract of sale exists at that stage. Under Section 4 of Central Excise Act, 1944 and Rule 6 of Valuation Rules, additional consideration requires existing sale contract between parties. The specifications were merely layout dimensions necessary for manufacturing compatible parts, not consideration received by vendors. Appeals allowed, impugned order set aside. Case-Laws Central Excise Mon, 17 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766074