Is reversal of cenvat credit required due to price revision

[SANDESH SHINDE]

Dear Sir, Is reversal of cenvat credit required due to price variation resulting in reduction in price,pls give us any reference regarding and under which rule,thanks and regards.

AI Summary

Reversal of CENVAT Credit Needed Only if Both Price and Central Excise Duty are Reduced Retrospectively A discussion in a forum addressed whether the reversal of CENVAT credit is required due to price revisions resulting in a price reduction. One participant stated that if only the basic price is reduced retrospectively, reversal is not needed, but if both the basic price and Central Excise Duty are reduced, reversal is necessary. References to legal provisions and case law, such as CCE v Mahavir Cylinder, were provided to support these claims. Additionally, a government circular clarified that if the duty paid is not reduced, the credit remains valid, even if the price is discounted later.