Cenvat credit depends on duty actually paid; trade discounts do not force reversal unless duty itself is reduced. Credit is available for duty actually paid by the inputs manufacturer, not duty payable; where a supplier grants a trade discount after invoicing but has already paid higher duty, the full duty shown on the invoice remains admissible as Cenvat credit, unless the supplier's duty itself is reduced or a refund has been claimed.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Cenvat credit depends on duty actually paid; trade discounts do not force reversal unless duty itself is reduced.
Credit is available for duty actually paid by the inputs manufacturer, not duty payable; where a supplier grants a trade discount after invoicing but has already paid higher duty, the full duty shown on the invoice remains admissible as Cenvat credit, unless the supplier's duty itself is reduced or a refund has been claimed.
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