Cenvat credit on full invoice duty upheld where later debit notes did not reduce duty or trigger refund claims.

Cenvat credit on the full duty shown in the supplier's invoice cannot be denied merely because the buyer later issues debit notes for discount or short receipt. Where the manufacturer-supplier has paid duty as reflected in the invoice, the duty has not been reduced, and no refund has been claimed, the later price adjustment does not affect the credit entitlement. The Board's circular was applied to confirm that the entire duty amount remains available as credit in such circumstances. The Revenue's objection therefore failed, and the assessee was entitled to the full credit.

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Issues: Whether Cenvat credit taken on the full duty amount shown in the supplier's invoice was liable to be denied because the buyer later issued debit notes reflecting discount or short receipt, when the supplier had not reduced the duty paid and had not claimed refund.

Analysis: The credit was availed on the basis of invoices showing duty paid by the manufacturer-supplier. The later debit notes only reflected post-clearance discount or adjustment and did not establish any reduction in the duty actually paid. The Board's circular clarified that the entire duty shown in the invoice remains available as credit where the duty paid is not reduced and no refund is claimed by the supplier. The Revenue did not dispute that the duty had been paid by the manufacturer and that no refund had been sought.

Conclusion: The denial of credit was not justified and the assessee was entitled to avail credit of the full duty amount shown in the invoice.

Final Conclusion: The Revenue's challenge to the allowance of Cenvat credit failed.

Ratio Decidendi: Where duty has been paid by the manufacturer as shown in the invoice and is not subsequently reduced, Cenvat credit cannot be denied merely because the buyer later records a price adjustment or discount through debit notes, particularly when no refund is claimed by the supplier.

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