Discount purchase

[Shanmugam Sreedevi]

Purchase from party with 100 percent discount.  The party charges Excise duty of 12.36 percent of basic amount.  But the basic value & Local tax is entered as 100 percent Discount.

Shall we account this bill only excise duty amount?  Can we take cenvat input credit for the same.

Please clarify

AI Summary

Cenvat credit allowed where valid invoice supports receipt of inputs used in manufacture, subject to CENVAT Credit Rules compliance.
Purchase showing 100% discount with excise duty charged: Cenvat credit may be availed if the recipient holds valid documentary evidence of receipt and uses the inputs in manufacturing, subject to compliance with the procedural and substantive conditions of the CENVAT Credit Rules, 2004.