Cenvat credit of SAD - Reg

[vinay wakde]

We are purchasing imported Capital goods from various dealers. The Notification No. 102/2007 –Customs, dated 14.09.2007 has granted the exemption by way of refund of SAD to the dealers of imported goods.  However, the dealers were passing the credit of SAD to the buyer instead of claiming refund with the Department. We have taken CENVAT credit of SAD on the strength of valid duty paying documents, which is now objected by the Excise Auditors.  As per the Department, the dealer has to claim refund of SAD from the Department as per Notification No. 102/2007 –Customs, dated 14.09.2007.   Kindly clarify whether the objection taken by the Excise Auditor is correct and we have to reverse the credit?  

Regards,

VINAY

 

AI Summary

Debate Over CENVAT Credit on SAD for Imported Goods: Can Dealers Pass Credit or Must Claim Refund? A discussion on a forum addresses the issue of CENVAT credit of Special Additional Duty (SAD) on imported capital goods. The original query raises concerns about the objection by Excise Auditors who claim that dealers should claim a refund of SAD from the Department, as per Notification No. 102/2007-Customs. Various respondents argue against the auditors' stance, stating that passing the SAD credit to buyers is permissible and that the decision to claim a refund or pass on the duty lies with the dealer. They suggest that the auditors' objection lacks legal basis and understanding of the rules.