Relief to Bosch: CESTAT Rules Notional Cost of Free Designs from Maruti Not Part of Excise Duty Valuation

The CESTAT (Customs, Excise, and Service Tax Appellate Tribunal) has granted relief to Bosch, ruling that the "notional cost of free designs" provided by Maruti "cannot be included in the excise duty valuation." The tribunal concluded that since the final products were made using Bosch's own designs, the value of the initial specifications provided by Maruti should not be added to the assessable value for excise purposes. This decision provides clarity and a favorable precedent for manufacturers who receive free designs from their clients.