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Cenvat Credit on Credit Note.

Central Excise - Started By: - SHIVKUMAR SHARMA - Dated:- 17-10-2015 Last Replied Date:- 20-10-2015 - Dear ExpertsSome of our Customers have make payments before due date & v have given them 5% discount for last 10 month supply & issued credit note to them for basic +Excise+VAT in September2015.Pls.confirm whether v can take cenvat credit of Excise duty on the basis of Credit note issued by us to the customers.Thanks in advanceSHIVKUMAR SHARMA - Reply By YAGAY AND SUN - The Reply = CENVA .....

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r of output service or input service distributor, as the case may be, on the basis of any of the following documents, namely :- (a) an invoice issued by- (i) a manufacturer for clearance of - (I) inputs or capital goods from his factory or depot or from the premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer; (II) inputs or capital goods as such; (ii) an importer; (iii) an importer from his d .....

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or depot or from the premises of the consignment agent of the said manufacturer or importer or from any other premises from where the goods are sold by, or on behalf of, the said manufacturer or importer, in case additional amount of excise duties or additional duty leviable under section 3 of the Customs Tariff Act, has been paid, except where the additional amount of duty became recoverable from the manufacturer or importer of inputs or capital goods on account of any non-levy or short-levy by .....

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supplementary invoice, bill or challan issued by a provider of output service, in terms of the provisions of Service Tax Rules, 1994 except where the additional amount of tax became recoverable from the provider of service on account of non-levy or non-payment or short-levy or short-payment by reason of fraud or collusion or wilful mis-statement or suppression of facts or contravention of any of the provisions of the Finance Act or of the rules made thereunder with the intent to evade payment of .....

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cate) issued by the Indian Railways, along with the photocopies of the railway receipts mentioned in the STTG certificate; or (g) an invoice, bill or challan issued by an input service distributor under rule 4A of the Service Tax Rules, 1994. Provided that the credit of additional duty of customs levied under sub-section (5) of section 3 of the Customs Tariff Act, 1975 (51 of 1975) shall not be allowed if the invoice or the supplementary invoice, as the case may be, bears an indication to the ef .....

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n. - Reply By KASTURI SETHI - The Reply = In this context, I would like to refer to Board's circular No.122/3/2010-ST dated 30.3.2010. Though it pertains to Service Tax, it can be made applicable to Central Excise, it being same analogy. - Reply By SURESH ASTEKAR - The Reply = From your query it is clear that you have paid Excise Duty on the price initially charged to your customers and on account of their early payments you have given them discount of 5%. Your customers would most probably .....

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ay issue notices to your customers seeking reversal of the cenvat credit to the extent of the Excise duty that you have indicated in the credit notes issued to your customers. In any case you cannot take cenvat credit of the excise duty indicated in the credit notes issued by you to your customers since it is not the duty paid by you on your inputs. - Reply By Mahir S - The Reply = Sir,An assessee cannot take cenvat credit based on the credit note issued by himself. - Reply By SHIVKUMAR SHARMA - .....

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he refund of the duty amount paid back to your customers by way of credit note, within one year as per Section 11B of the Central Excise Act. There are several decisions on this point, some of which are as under: 2015 (320) E.L.T. 756 (A.P.) = 2015 (9) TMI 877 - ANDHRA PRADESH HIGH COURT IN THE HIGH COURT OF JUDICATURE FOR ANDHRA PRADESH AT HYDERABAD L. Narasimha Reddy and Challa Kodanda Ram, JJ. HYDERABAD CHEMICAL SUPPLIES LTD. Versus C.C.E. & C., HYDERABAD-IV C.E.A. No. 21 of 2004, decided .....

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G of Central Excise Rules, 1944 contains names of persons extended with trade discounts - Also trade discounts in form of credit note, therefore, corresponding burden not passed on to end-customer - Court decision in A.P Paper Mills Limited followed - Section 11 of Central Excise Act, 1944. [paras 6, 7, 8, 9, 10, 11, 12] 2015 (319) E.L.T. 347 (Tri. - Del.) = 2015 (9) TMI 460 - CESTAT NEW DELHI IN THE CESTAT, PRINCIPAL BENCH, NEW DELHI

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, not open to Revenue to challenge the same - Discount policy known to customers at time of clearance of goods as proved by certificates given by customers and records showing discounts actually given to customers on attaining particular goal of quantum of purchase - Said customers certificate, though given subsequently, relate to relevant period - Non-uploading of discount policy on website not relevant as discount policy floated amongst customers by assessee - As discount deductions from asses .....

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os. A/896-905/2014-WZB/C-IV(SMB), dated 22-4-2014 in Appeal Nos. E/1531-1540/2007-Mum Refund - Unjust enrichment - Discount given to customers on clearance of old stocks/prompt payment of vehicles vide issuance of credit notes and refund claimed of duty component of said discounts - Following decision of High Court of Madras in case of Addison & Co. - [2001 (129) E.L.T. 44 (Mad.)= 2000 (11) TMI 146 - HIGH COURT OF JUDICATURE AT MADRAS] as entitlement of discount already known to buyers prior .....

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O. II] Shri Anil Choudhary, Member (J) DAIMLER CHRYSLER INDIA PVT. LTD. Versus COMMISSIONER OF C. EX., PUNE-I Final Order No. A/906/2014-WZB/C-IV(SMB), dated 25-4-2014 in Appeal No. E/1556/2007-Mum Refund - Denial of - Unjust enrichment - Incentive discount and consequent duty relief given to dealers/agents, by way of credit notes issued subsequent to clearance of vehicles by manufacturer, not passed on to ultimate consumer - HELD : Following ratio of decision in .....

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(2) ibid. [para 7] Appeal allowed 2014 (306) E.L.T. 344 (A.P.) = 2014 (3) TMI 671 - ANDHRA PRADESH HIGH COURT IN THE HIGH COURT OF JUDICATURE FOR ANDHRA PRADESH AT HYDERABAD G. Chandraiah and Challa Kodanda Ram, JJ. A.P. PAPER MILLS LTD. Versus COMMR. OF C. EX., VISAKHAPATNAM C.E.A. Nos. 51 of 2004 and 9, 10 & 21 of 2005, decided on 19-2-2014 Refund when discount allowed to dealers by manufacturer-assessee resulting in revision of invoic .....

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