DETERMINE OF ASSESSABLE VALUE IN DEALER INVOICE

[SURYAKANT MITHBAVKAR]

We have purchase excisable material from dealer and he is passed on excise duty to us. while showing assessable value in dealer invoice he is declared more value than selling price to us.

In such case any descripancy arrive to avail cenvat credit of the same.

[KASTURI SETHI]

SH.SURYAKANT MITHBAVKAR JI,

A dealer is to pass on the amount of cenvat credit. It should not be more than the paid amount. Hence passing on credit to your buyer is not concerned with assessable value. The assessable value is NOT relevant here as the legal purpose is to pass on credit what has been paid.

[CSSANJAY MALHOTRA]

Nicely explained by Sh. Kasturi ji,

[Ganeshan Kalyani]

Sir I agree with Sri Kasturi Sir's reply. Thanks.

AI Summary

Passing of cenvat credit: seller may only pass on the credit actually paid; invoice assessable value is irrelevant. A dealer may pass on only the amount of cenvat credit actually paid; the assessable value shown on the invoice is not determinative for passing on credit, and an inflated invoice value alone does not change the legal measure of credit payable to the buyer.