DGGSTI fixing hearings in Show Cause Notices issued demanding excise duty on drawings and designs

by | Jan 21, 2021 | Insight

Over past two years, DGGSTI has issued Show Cause Notices to more than 500 Component Manufacturers of one Automotive OEM across India. Vide these Notices, DGGSTI has proposed to raise demand of excise duty along with interest and penalty, holding these drawings and designs to be additional consideration under Rule 6 of the Excise Valuation Rules. DGGSTI has also proposed personal penalty on top management of component manufacturers.

Notably, DGGSTI has appointed Additional Director General (Adjudication), DGGSTI, New Delhi as common adjudicating authority to adjudicate this issue for all Component Manufacturers. Now, DGGSTI has commenced with the next step of fixing hearings in these matters. Given the same, Component Manufacturers must expedite submission of replies incorporating all factual as well as legal grounds with the Adjudicating Authority.

To throw light upon correct legal position and way forward for handling these litigations, our Managing Partner, Mr. Puneet Bansal, has coherently discussed this issue, correct legal position alongwith NITYA’s take in short video titled ‘Excise Duty on cost of Drawings and Designs’ available at https://youtu.be/kgudhi__krY .

Hope you find this an interesting watch. Please feel free to share your comments / feedback on the same.

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