TaxTMI 
TaxTMI 
Dear Sir,
We have Purchased Capital Goods from First Dealer / Second Stage Dealer he shown SAD on his Invoice can we take Full Credit on SAD or 50 percent any notification on full credit SAD
SAD on Capital Goods
23 Oct 2013 
3 Replies 
4588 Views Asked by
SAD credit: full credit for capital goods allowed immediately under Cenvat rules, though administrative views conflict.
The dispute concerns entitlement to cenvat credit of the additional duty in lieu of sales tax (SAD) on capital goods. Administrative opinions differ: one advises only partial credit, while others rely on the proviso to rule 4(2)(a) of the Cenvat Credit Rules to allow immediate cenvat credit of the additional duty on capital goods upon receipt in the factory, permitting full use of that credit against excise liability subject to Cenvat conditions. (AI Summary)
The dispute concerns entitlement to cenvat credit of the additional duty in lieu of sales tax (SAD) on capital goods. Administrative opinions differ: one advises only partial credit, while others rely on the proviso to rule 4(2)(a) of the Cenvat Credit Rules to allow immediate cenvat credit of the additional duty on capital goods upon receipt in the factory, permitting full use of that credit against excise liability subject to Cenvat conditions. (AI Summary)