Cenvat credit on duty on discounted amount

[akhilesh dubey]

Cenvat credit on duty on discounted amount is admissible or not? Example: Manufacturer 'A' has purchase input for Rs. 1000. He availed cenvat credit Rs. 103 on excise duty paid as mentioned in bill amount. At the time of payment manufacturer received dicount of Rs. 200 from the saler. Is the manufacturer is entitle to avail credit of duty attributable on Rs. 200? Kindly quote rule / judgement on your support. Akhilesh Dubey Patna

AI Summary

Can Manufacturers Claim Full Cenvat Credit on Discounted Inputs? Insights from Board Circular No. 877/15/2008 A discussion on a forum addresses whether a manufacturer can claim Cenvat credit on the excise duty for a discounted amount. The query involves a scenario where a manufacturer purchased inputs for Rs. 1000, availed Cenvat credit of Rs. 103, and later received a Rs. 200 discount. Responses indicate that credit is permissible if the duty amount remains unchanged despite the discount, as per Board Circular No. 877/15/2008. However, if the duty is reduced along with the price, only the reduced duty is creditable. It is advised to verify that the supplier hasn't claimed a refund for the reduced price.