https://www.taxtmi.com/caselaws?id=797628 Assessable value under Central Excise valuation rules includes buyer-supplied drawings, designs or other benefits only where they constitute additional consideration flowing to the manufacturer and are used in, or necessary for, production. Preliminary drawings supplied for vendor selection merely to communicate specifications and obtain quotations do not qualify where the manufacturer must prepare the detailed manufacturing designs. Royalty paid by the buyer to its foreign collaborator is also excluded where it does not flow to the manufacturer and lacks a nexus with manufacture or clearance. Consequently, neither item supports inclusion in assessable value, or a consequential demand, interest or penalty. en-us Mon, 24 Aug 2026 00:00:00 +0530 Wed, 26 Aug 2026 08:27:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797628 Assessable value under Central Excise valuation rules includes buyer-supplied drawings, designs or other benefits only where they constitute additional consideration flowing to the manufacturer and are used in, or necessary for, production. Preliminary drawings supplied for vendor selection merely to communicate specifications and obtain quotations do not qualify where the manufacturer must prepare the detailed manufacturing designs. Royalty paid by the buyer to its foreign collaborator is also excluded where it does not flow to the manufacturer and lacks a nexus with manufacture or clearance. Consequently, neither item supports inclusion in assessable value, or a consequential demand, interest or penalty. Case-Laws Central Excise Mon, 24 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797628