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

Cenvat credit on duty: allowed where duty is shown and paid despite trade discount, unless duty itself is reduced.
Cenvat credit is available where the supplier has paid duty and the duty amount is shown in the invoice, even if a subsequent trade discount or price reduction is given, so long as the duty amount is not varied; if duty is reduced, only the reduced duty is admissible, and the purchaser should confirm that the supplier has not claimed refund or altered the duty paid.