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TMI Blog2013 (7) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... he inputs manufacturer had paid the higher duty - Rule 3 of Cenvat Credit Rules, 2004 allows credit of duty paid by the inputs manufacturer and not duty payable by the said manufacturer. The entire amount of duty paid by the manufacturer, as shown in the invoice would be available as credit irrespective of the fact that subsequent to clearance of the goods, the price is reduced by way of discount or otherwise - If the lower authorities, even after the clarifications issued by the Board, keep on the deciding the matters contrary to the said clarifications, it lowers the public faith in the fair and just trial/adjudication by the departmental officers – Decided in favor of Assessee. - Appeal No. 56503 of 2013 (SM) - Final Order No. 56896/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Clarification regarding reversal of Cenvat credit in case of trade discount Regarding. Representations have been received from trade and industry seeking clarification on the issue whether proportionate credit should be reversed in cases where a manufacturer avails credit of the amount of duty paid by supplier as reflected in the excise invoice, but subsequently the supplier allows some trade discount or reduces the price, without reducing the duty paid by him. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irculars, the officers working in the field or exercising adjudication or appellate powers are expected to follow the same, so as to reduce the litigation, which is the purpose of issuance of such type of Circulars. If the lower authorities, even after the clarifications issued by the Board, keep on the deciding the matters contrary to the said clarifications, it lowers the public faith in the fair and just trial/adjudication by the departmental officers, which is required to be avoided at all costs. Apart from the said Circular, I find that the issues are decided by the Tribunal in number of cases. One such reference can be made to the Tribunal decision in the case of CCE, Surat vs. Trinetra Texturisers Pvt. Ltd. reported in 2004 (166) E.L ..... X X X X Extracts X X X X X X X X Extracts X X X X
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