Reimbursement of 4% SAD

[Pradeep Jain]

Sir,

Getting Free of Cost imported components ( inputs ) from our customer and   Customs Duty, CVD and 4% SAD the said amount is paid by our them and getting the  inputs directly at our Plant  and availing CENVAT Credit of CVD and SAD. After that paying ED on finished goods supplied to them. SAD amount is retained with us. Now Customer is asking to reimburse the accumulated SAD amount

Are we liable to pay the SAD ? if yes then under which documents and  rule.

Regards

 

Pradeep Jain

 

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above said issue? If not please inform.

AI Summary

Reimbursement of SAD: whether manufacturer must reimburse retained duty when inputs supplied free and CENVAT claimed.
Issue: imported inputs supplied free of cost by customer with Customs Duty, CVD and SAD paid by customer; manufacturer availed CENVAT Credit of CVD and SAD, paid excise on finished goods and retained accumulated SAD. Question whether manufacturer must reimburse the retained SAD to the customer and, if so, under which documents and rule. Reply in the record only seeks clarification and further information rather than providing a substantive ruling.