Notional Cost of Specifications Provided By Maruti Suzuki Deemed “Buyers’ Assist”: CESTAT Quashes Excise Duty Demand on Vendor

This article reports on a decision by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) that the notional cost of drawings and designs supplied free of cost by Maruti Suzuki India to its vendors cannot be added to assessable value for excise duty, since these constituted “buyers’ assist” and not additional consideration. The ruling emphasises vendor-supplier value‐addition boundaries and fair valuation rules in indirect tax assessments.