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

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has provided relief to Bosch, ruling that the notional cost of free designs from Maruti is not part of excise duty valuation. This significant decision clarifies the valuation methodology for excise duty, particularly concerning design inputs received without direct payment. CESTAT likely found that since these designs were provided free of cost by the buyer (Maruti), their notional value should not be added to the assessable value of the goods manufactured by Bosch for excise purposes. This ensures fair taxation and prevents artificial inflation of duty liabilities.