Clarification regarding reversal of Cenvat Credit in case of trade discount -reg.

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....ated 17th November 2008. Subject: -Clarification regarding reversal of Cenvat Credit in case of trade discount -reg. Representations have been received from trade and industry seeking clarification on the issue whether proportionate credit should be reversed in cases where a manufacturer avails credit of the amount of duty paid by supplier as reflected in the excise invoice, but subsequently t....

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....ses, the entire amount of duty paid by the manufacturer, as shown in the invoice would be available as credit irrespective of the fact that subsequent to clearance of the goods, the price is reduced by way of discount or otherwise. However, if the duty paid is also reduced, along with the reduction in price, the reduced excise duty would only be available as credit. It may however be confirmed tha....