2015 (10) TMI 2210

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....om M/s. Tata Steels Ltd., who issues invoices at agreed price between the parties, and pay duty thereon. The appellant is availing cenvat credit of duty paid by M/s. Tata Steels Ltd. Later on, negotiations took place between the parties and the price of inputs procured by the appellant were reduced by giving certain discounts. The Revenue is of the view that the discount, which has been given to the appellant, contains duty element, therefore, the appellant is required to reverse the cenvat credit of duty contained in discount. In these set of facts, a show cause notice was issued to the appellant for reversal of cenvat credit and consequently, demanding duty along with interest and imposing penalty, matter was adjudicated and demands were ....

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....t the supplier of the goods have not claimed the refund of the excess duty paid by the supplier on account of reducing the excess value of the goods in question on whom the appellant has taken the cenvat credit, therefore, the CBEC Circular No.877/15/2008-CX dated 17.11.2008 clarifies that situation, wherein it has been clarified as under:- "2. The issue has been examined. Since, the discount in such cases are given in respect of the value of inputs and not in respect of the duty paid by the supplier, the effect of reduction of value of inputs may be that the duty required to be paid on the inputs was less than what has been actually paid by the inputs manufacturer. However, the fact remains that the inputs manufacturer had paid th....