Cenvat credit on the basis of debit note in connection of negotiate the price of goods later on after despatch the goods., Central Excise

[SHIVKUMAR SHARMA]

Dear Expert

We have Cleared the goods to our Customers as per verbal discussion over phone & later on we have finalise the price of goods with the customer & the same is on lower side accordingly our customer is

raise a debit note for the excess amount showing excise duty separately because he is not registered with the central excise & not taking cenvat credit.Pls.clarify  whether we can avail the cenvat credit on the Debit note issued by our customer on the basis of  price difference of our finished goods.

 

Posts / Replies

[PAWAN KUMAR]

As per my view, there are two options :

1.Take cenvat credit on your own invoice. Keep the copy on invoice along with the debit note received from your customer and a copy of the p.o. Also intimated your range superintendent and remark in the Excise return that excess duty was paid which accordingly re-credited towards the invoice.

2.Filed the refund of excess excise duty paid to the department.

 

[phani raju konidena]

My dear Sharma,

You can take the cenvat credit on the basis of 'Debit Notes'. In the case of Mahanagar Gas Ltd., Vs. CCE, Mumbai-V (2013 (12) TMI 1385 - CESTAT MUMBAI)  the Tribunal while allowing the Stay has held that -

CENVAT Credit is available on the basis of debit notes provided all the ingredients as required in the invoices are contained therein - issue has been decided by Tribunal extending such benefit - prima facie case in favour - Stay granted: CESTAT [para 5]

Accordingly, you can tak, if all the ingredients are satisfied under Rule 9 of CCR, 2004.

With regards,

K.PHANI RAJU