4% sad refund

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2013 we are importing inshell Almond and paying additional custom duty of 4% than we process this material in our factory and selling almond carnels in domestic market. now i would like to know can i get complete refund of 4% additional duty though i am selling processing material which is lesser than importing quantity.

for Eg if i am importing 100kg with shell but after processing we are getting only 70kg output.

our VAT amount on domestic sell is higher than additional custom duty.

please assist can we get full refund or it will be in proportion of quantity (100:70)?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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04 March 2013 THE S.A.D DUTY WHICH IS MENTIONED IN BILL OF ENTRY CAN BE WHOLLY REFUNDED

Refund of SAD (Special Additional Duty) is being gr
anted by the customs authorities in terms of Notification No. 10 2/2007 dt. 14.09.2007.

A careful perusal of the notification reveals that
SAD paid at the time of importation has to be paid back if the goods are so ld in the domestic market and suffer local sales tax. The idea is, a product cannot be taxed twice – SAD being the counterpart of local sales tax. The idea looks gran d, but actual
implementation rests on establishing linkage between

a)Goods imported and sold in domestic market.
b)Proof that SAD has not been CENVATTED.
c)Unjust enrichment to be ruled out and certified so,
by thecompanies Charted Accountant.

Time – Limit:

In the Notification No.102/2007-Customs dated 14.9.2007, no specific time limit has been prescribed for filing a refund application. Under the circumstances, a doubt has been expressed that whether the normal time-limit of six months prescribed in section 27 of the Customs Act, would apply. In the absence of specific provision of section 27 being made applicable in the said notification, the time limit prescribed in this section would not be automatically applicable to refunds under the notification. Further, it was also represented that the goods imported may have to be despatched for sale to different parts of the country and that the importer may find it difficult to dispose of the imported goods and complete the requisite documentation within the normal period of six months. Taking into account various factors, it has been decided to permit importers to file claims under the above exemption upto a period of one year from the date of payment of duty. Necessary change in the notification is being made so as to incorporate a specific provision prescribing maximum time limit of one year from the date of payment of duty, within which the refund could be filed by any person. It is also clarified that the importers would be entitled to refund of duties only in respect of quantities for which the prescribed documents are made available and the claims submitted within the maximum prescribed time of one year. Unsold stocks would not be eligible for refunds.

FUR MORE INFO:

http://www.cbec.gov.in/customs/cs-circulars/cs-circulars10/circ18-2k10-cus.htm

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2013 thanks a lot for your response sir.
but if after processing we are getting only 70% saleable materail.

in that situation can we get claim on on over all 100% or only saleable 70% material.

also rest 30% is scape of shell. is there any way to claim for scrap too because scrap sale is VAT exempt so no tax payment on the same.

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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06 March 2013 cbec will provide SAD on the basis of sales to domestic market & CA will certified the reports in the notified annexures.

regards,