Cenvat credit of sad u/s 3(5) by a manufacturer cum trader

Please help me on the following issue :)

M/s X P. Ltd., a manufacturer registered with the Excise Authorities having registered premises in Bangalore has imported certain goods and paid customs duties including SAD u/s 3(5). Their customers are located across the country. The entire goods imported are sold without any further conversion / manufacturing process.  A part of imported goods is sold within Karnataka and the balance is dispatched to a retailer in Karnataka. They have paid state VAT on the sales made within the state and paid CST on inter-state sales. On reviewing the invoices, the director raised objection on levying VAT and CST as the imported goods are already chargeable to SAD u/s 3(5), which is levied to counter balance sales tax and other local taxes Can M/s X Pvt Ltd get credit of SAD paid? Can the SAD so paid be utilised to knock off excise liability?

Replies (4)

if you dont have passed the sad in local sale than you can claim for sad it shall be refunded to you

Thanks Deepak! Appreciate the quick revert.

 

From the company's point of view, refund process costs them money. So wouldnt it be beneficial for them to use this as CENVAT Credit and knock off their Excise Liability?

Dear Suraj,

Manufacturer can claim it as Cenvat if you dont want to claim as refund under notification no. 102/2007.

this benefit is available only with manufacturer and not with dealers. Dealer's must have to go for refund and cannot take cenvat credit of SAD.

 

Thanks and Regards,

Manoj B. Gavali

 

i need karnataka State Refund claim form

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