TaxTMI 
TaxTMI 
If Input is recd. @ Rs.25/ per kg, duty is also paid on Rs.25/ by supplier. After receipt, if some defect is found than consignee issues Debit Note to the supplier thus pay less to supplier to the extent of Debit Note. Whether full credit can be taken by consignee.Pl. quote some case laws.
taking of credit if debit note issued
10 Sep 2013 
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Cenvat credit must be adjusted after issuance of a debit note to permit proportionate credit and prevent unjust enrichment.
When a debit note reduces payment for defective inputs, the consignee may avail cenvat credit only after adjusting for the debit note, i.e. on a proportionate basis to avoid unjust enrichment; the consignee must maintain supporting records (debit note, invoice, purchase order, payment particulars, correspondence) for audit and reconcile accounted quantities, and the supplier may alternatively claim a refund or take credit if debit note conditions conform to rule 11 of CER, 2002 as reflected in the cited authority. (AI Summary)
When a debit note reduces payment for defective inputs, the consignee may avail cenvat credit only after adjusting for the debit note, i.e. on a proportionate basis to avoid unjust enrichment; the consignee must maintain supporting records (debit note, invoice, purchase order, payment particulars, correspondence) for audit and reconcile accounted quantities, and the supplier may alternatively claim a refund or take credit if debit note conditions conform to rule 11 of CER, 2002 as reflected in the cited authority. (AI Summary)