Customer has place order for the material wherein they have mentioned discount. while preparing the invoice we are not treat any discount .
Can we pass them credit note for discount giving effect of excise duty which is already paid and reverse the excise duty (i.e. the excise duty difference of discount adjusted against other clearance)
Pl advice.
Debate on Excise Duty Adjustments: Can Discounts via Credit Notes Alter Assessable Value? Conflicting Legal Opinions Arise. A customer inquired about issuing a credit note for a discount on an order where excise duty was already paid, seeking to adjust the excise duty difference against other clearances. One respondent cited several legal precedents supporting the deduction of discounts from the assessable value through credit notes, even if not initially shown on the invoice. Another respondent, however, stated that the modvat of excise duties based on a credit note is inadmissible. The discussion reflects differing views on handling excise duty adjustments related to discounts. (AI Summary)
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