manufacturer imported raw material sales as such basis can charge 4% sad in invioce

[nandankumar roy]

Dear sir,

please clear regarding manufacturer of formulation drugs imported raw material(bulk drugs) and then sales as such basis this product to third party can charge 4% sad in invioce ?

Nandan Roy

AI Summary

Manufacturers Selling Imported Materials as-Is Must Navigate Rule 6 of CENVAT Credit Rules for Duty and VAT Compliance A manufacturer inquired about charging 4% Special Additional Duty (SAD) on invoices when selling imported raw materials as-is to third parties. Experts advised that such transactions fall under 'inputs cleared as such,' requiring duty payment equivalent to the CENVAT credit initially availed. Selling as a trader allows for VAT charges and potential SAD refund claims. The process involves complex procedures under Rule 6 of the CENVAT Credit Rules, 2004. Options include incorporating SAD into product cost and charging VAT or claiming SAD refunds by charging only VAT/CST, subject to compliance with specific rules.