CREDIT NOTE AGAINST EXCISE DUTY PAID

[SURYAKANT MITHBAVKAR]

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.

 

AI Summary

Credit note discounts can reduce assessable value, enabling reversal or adjustment of previously paid excise duty.
Post sale price adjustments by credit note that reflect genuine discounts known to the buyer or evidenced later are deductible from the transaction price for excise valuation, so the assessable value must be computed after allowing such discounts; judicial precedents support corresponding duty reversal or adjustment, while administrative views may contest modvat/CENVAT reversal absent clear entitlement.