Credit note against Purchase return

I do not think debit note is essential . Being a supplier we often issue credit note but we never demand debit note from customer. ( Note: We are not RCM supplier )

Please note the prime condition for issuing credit note is the recipient should reverse the ITC w.r.t such credit notes. Your suppliers intention might be to get proof of such reversal at your end. 

If in case department asks for query he may proceed such Dr note and say that the recipient has reduce so much of ITC. 

My Dear friend,

Please replace debit note in Sale invoice and paid liabilities with out ward supply. Instead of reverse ITC while issue debit note... than not need to demand from supplier for issue credit note...  

1) At the time of Purchase Invoice (for them it is Sales) 

Dr.  You ( Customer)

Cr. Sales

2) At the time of Purchase Return (for them it is Sales Return)

Dr. Sales Return/Sales

Cr. You (Customer)

now adjustment with Debit Note

Dr.  You ( Customer)

Cr. Sales

If recipient issues his tax invoice for purchase returns how the the supplier of the goods treat it. Whether issue credit note or treat it as purchase