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2018 (3) TMI 59 - AT - Central ExciseValuation - inclusion of cost of free supply of drawings - Section 4 of the Central Excise Act, 1944 - Held that: - In principle, as per Rule 6 of Central Excise Valuation Rules, 2000 the value of free of cost drawing used for the manufacture of final product for the customer must be included in the value of automobile parts - However, it is observed that the Adjudicating Authority has taken 0.90% which is overall R & D expenses of M/s Mahindra & Mahindra Ltd. which obviously cannot be the cost of drawing supplied by M/s Mahindra & Mahindra Ltd. It is also fact that the appellant also did not make any effort to provide the cost of drawing either by obtaining from M/s Mahindra & Mahindra Ltd. or Chartered Engineer certificate, therefore dispute cannot be resolved at this stage in the given facts - the appellant must obtain Chartered Engineer certificate for certifying the cost of each drawing and on that basis the demand can be determined on the cost of such drawings. Appeal allowed by way of remand.
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