Excise Duty demand of approx. 24 Crores was quashed on amount recovered as Liquidated Damages due to non-violation of Rule 6

Volkswagen India Pvt. Ltd. Vs Commissioner of Central Excise & Service Tax (CESTAT Mumbai)

Conclusion: Excise duty demand of approximately 24 crores against Volkswagen India was quashed on the amount recovered as liquidated damages on the ground of non-violation of Rule 6 of the Central Excise Rules,2002 and in the event of rejection of the invoice value as transaction value, it was not open to the adjudicating authority to re-determine value without recourse to Rule 6 of Central Excise Rules.

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