Pass on of CVD / SAD by manufacturer importer

[Guest]

Sir,

'A' and 'B' (sister unit) is registered as a manufacturer in Excise.

'A' make high seas purchase (import) and credit taken CVD-12% and SAD-4%.

Now 'A' 50% of goods use for manufacturing final product and balance 50% goods as such as stock transferred to 'B' unit against Form-F and Both duty (CVD and SAD) also passon to 'B'.

Now 'B' liable to credit taken CVD-12% and SAD-4%.

Please advise.

Thanks

Kailash

AI Summary

Manufacturer's Sister Unit Can Avail 50% Credit for CVD and SAD on Transferred Goods Under Form-F. A manufacturer, referred to as 'A,' imports goods and takes credit for Countervailing Duty (CVD) at 12% and Special Additional Duty (SAD) at 4%. Half of these goods are used for manufacturing, while the remaining half is stock transferred to a sister unit, 'B,' under Form-F, with both CVD and SAD credits passed on. The query seeks clarification on whether 'B' can avail credit for these duties. The response confirms that 'B' can avail credit for CVD and SAD for 50% of the total credit.