Cenvat Credit on Credit Note.

[SHIVKUMAR SHARMA]

Dear Experts

Some of our Customers have make payments before due date & v have given them 5% discount for last 10 month supply & issued credit note to them for basic +Excise+VAT in September2015.

Pls.confirm whether v can take cenvat credit of Excise duty on the basis of Credit note issued by us to the customers.

Thanks in advance

SHIVKUMAR SHARMA

AI Summary

Cenvat credit cannot be claimed on self issued credit notes; use a supplementary invoice or statutory refund instead.
Credit notes issued after removal of goods are not among the documents prescribed for taking Cenvat credit under Rule 9; therefore credit cannot safely be taken on the basis of a self issued credit note. A compliant supplementary invoice or the statutory refund procedure is the proper mechanism to rectify excess duty paid due to post clearance discounts where customers have not availed credit. If customers have availed credit, reversal by them and interest consequences may arise.