4% SAD refund

[Chandan Garg]

An importer sells certain goods to a first stage dealer(FSD) on 2% cst and also pass on the 4% additional duty. Now FSD further sold these goods but he do not pass the 4 % additional duty. Can FSD claim the SAD refund?

[Deepak Bhardwaj]

In terms of notification no 102/2007 and amended time to time only Original Importer ,which Name and Address Shown on Bill of entry Can file the SAD Refund .

Thanksand Regards

Deepak Bhardwaj

Manager (Indirect-taxation)

[Sabareesh Nair]

Yes we can take the SAD refund within the one year period of time....if your material fully sold in one year then you can get 4% full refund.

AI Summary

Importer vs. First Stage Dealer: Eligibility for Special Additional Duty Refund Explained, Section 3(5) of Customs Tariff Act. An importer sold goods to a first stage dealer (FSD) with a 2% CST and passed on a 4% additional duty. The FSD, who did not pass on this additional duty when reselling the goods, inquired about eligibility for a Special Additional Duty (SAD) refund. One response clarified that only the original importer, whose name appears on the bill of entry, can file for the SAD refund. Another response suggested that if the goods are fully sold within one year, the FSD could claim the full 4% refund.