To all,
Sir,
Suppose a manufacture has availed credit on the strength of an Invoice where the price is Rs.100 and duty pass on is Rs.12.36 and later he receives credit of rate differnece of Rs.10. Mean to say that the actual amount he has paid is Rs.90 but credit take is Rs.12.36. Now , is the manufacturer is liable to reverse proportionate credit on Rs.10.
CENVAT Credit: No Reversal Needed for Price Adjustment if Full Duty Paid on Original Invoice Amount A manufacturer initially availed CENVAT credit based on an invoice with a price of Rs.100 and duty of Rs.12.36. Later, the price was adjusted to Rs.90, raising a question about whether the manufacturer must reverse the credit proportionate to the Rs.10 difference. A respondent clarified that if the manufacturer paid Rs.90 plus the duty of Rs.12.36, there is no need to reverse Rs.1.24, as the credit was received on the total amount, not just the basic value or the differential excise duty. The query was acknowledged with thanks. (AI Summary)
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