Cenvat Credit

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Ashutosh (Querist)
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16 July 2009 Can a manufacturing unit avail cenvat credit on Special Additional duty..? If Yes / No, will you please explain it logically..?

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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16 July 2009 SAD on imports was bought due to the fact that when one buys goods locally there is VAT levy.
For a Trader who imports there is no SAD levy in the sense that he can take a refund.
A manufacturer instead of paying the same is allowed to avail the credit as if he had boiught the same locally he would have been admissible for the VAT set off.