2019 (5) TMI 1454

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....er the required norms, accordingly, the price of the goods is negotiated during the supply and for reduction of price debit notes are issued. The case of the department is that since price of the input supplied has been reduced as compared to the price charged on the invoices and debit notes were issued, the appellant is required to reverse the cenvat credit, accordingly, demand was confirmed and upheld by the Commissioner. 2. Ms. Dipali Kamble Ld. Counsel appearing on behalf of the appellant submits that the entire quantity of the inputs received and used in the manufacture of the final product and only due to poor quality of the product which is known only at the time of manufacture of final product, the price was being negotiated and ....

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....e said statutory provision can be invoked for recovery of the Cenvat amount. In the present case, the issue is not in dispute that input goods covered under the Bill of Entry have not been received in the factory of the appellant. It is also not in dispute and there is no specific allegation by the Department that the goods have not been utilized for the manufacture of the final product. Since as a commercial practice and as per the terms of agreement entered into between the appellant and its supplier, the debit note was issued for compensating the appellant towards supply of sub-standard goods, Cenvat benefit cannot be denied to the appellant, in view of the fact no such provisions exist in the Cenvat statute for doing so." 5. In view ....