CREDIT NOTE AGAINST EXCISE DUTY PAID

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..... CREDIT NOTE AGAINST EXCISE DUTY PAID
Query (Issue) Started By: - SURYAKANT MITHBAVKAR Dated:- 5-12-2011 Last Reply Date:- 5-12-2011 Central Excise
Got 2 Replies
Central Excise
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 dut .....

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..... y which is already paid and reverse the excise duty (i.e. the excise duty difference of discount adjusted against other clearance) Pl advice. Reply By Pradeep Khatri: The Reply: In Aries Agrovet Industries v CCE (2007 (8) TMI 186 - CESTAT, BANGALORE)= (2008) 221 ELT 209 (CESTAT), It was held that discount given at end of month by way of credit note are eligible for deduction from assessable val .....

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..... ue - same view in CCE v Tempo Industries (2008 (2) TMI 105 - CESTAT, CHENNAI)= 2008 226 ELT 375 (CESTAT). In Gujarat Borosil v CCE 2009 (12) TMI 379 - CESTAT, AHMEDABAD = (2010) 253 ELT 610 (CESTAT), it was held that discount can be passed on later by way of a credit note. If buyer were aware of discount structure, deduction of discount is admissible even if not shown in Invoice. Trade discount .....

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..... paid later is allowable as deduction - CCE v DCM Textiltes (2006 (2) TMI 168 - SUPREME COURT OF INDIA) = (2006) 195 ELT 129 (SC). Discount equal to CENVAT credit allowable - In Incab Industries Ltd v CCE (1997 (6) TMI 205 - CEGAT, NEW DELHI) =1998 (98) ELT 560 (CEGAT), the assessee ha d agreed to give discount equal to CENVAT credit. It was held that assessable value has to be calculated after al .....

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..... lowing this deduction from price. Reply By DEEPAK SHARMA: The Reply: Dear suryakant, it is extremely stated that modvat of excise duties on the basis of credit note is inadmissible
Discussion Forum - Knowledge Sharing .....

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