2025 (6) TMI 178 - AT - Central Excise

Calculation of Excise duty - whether the national cost of drawings and designs supplied free of cost by Maruti to the vendor should be included in the assessable value of parts or components manufactured by vendor and cleared to Maruti for the purpose of payment of central excise duty? - HELD THAT - This issue was considered by this Division Bench in Denso India Private Limited vs. Additional Director General (Adjudication) New Delhi 2024 (3) TMI 686 - CESTAT NEW DELHI and it was held that the notional cost of drawings and designs supplied free of cost by Maruti to the vendors cannot be included in the assessable value of the parts and components manufactured by vendors and cleared to Maruti for the purpose of payment of central excise duty. The impugned order dated 16.01.2024 passed by the Additional Director General (Adjudication) deserves to be set aside and is set aside - Appeal allowed.

Summary

The Appellate Tribunal (CESTAT New Delhi) addressed whether the "notional cost of drawings and designs supplied free of cost by Maruti Suzuki India Limited to its vendor" should be included in the "assessable value of parts or components manufactured by the vendor" for central excise duty purposes. Relying on the precedent in *Denso India Private Limited vs. Additional Director General (Adjudication)*, the Tribunal held that such notional costs "cannot be included in the assessable value" for excise duty calculation. Consequently, the impugned order dated 16.01.2024 by the Additional Director General (Adjudication) was set aside, and the appeal allowed.