Commissioner Of Central ... vs M/S. Mysore Kirloskar Ltd.,Karnataka

The Supreme Court examined whether the amount of Rs.43 lakhs received by the respondent for designs and tooling could be included in the value of machines manufactured under the agreement dated May 10, 1991. The Court held that such charges for designs and drawings are not to be added to the assessable value of the machinery under Rule 6(2) of the Central Excise Rules, 1944, as they are distinct from the manufacturing process. Consequently, the Tribunal's decision to set aside the duty demand and penalty was upheld.