TaxTMI 
TaxTMI 
Is reversal of cenvat credit required due to price revision
13 Aug 2014 
6 Replies 
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Reversal of cenvat credit required when excise duty is reduced retrospectively; basic price reductions alone do not require reversal.
Reversal of Cenvat credit depends on whether excise duty is reduced: if only basic price is reduced retrospectively but the supplier paid the higher duty shown in invoice, no reversal is required under Rule 3; if the supplier's excise duty is also reduced, the buyer may only take credit of the reduced duty and must reverse any excess, subject to the supplier's entitlement to refund under Section 11B and related administrative circulars. (AI Summary)
Reversal of Cenvat credit depends on whether excise duty is reduced: if only basic price is reduced retrospectively but the supplier paid the higher duty shown in invoice, no reversal is required under Rule 3; if the supplier's excise duty is also reduced, the buyer may only take credit of the reduced duty and must reverse any excess, subject to the supplier's entitlement to refund under Section 11B and related administrative circulars. (AI Summary)
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.