TaxTMI 
TaxTMI 
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
manufacturer imported raw material sales as such basis can charge 4% sad in invioce
13 Feb 2016 
5 Replies 
1553 Views Asked by
Special Additional Duty treatment for resold imported inputs requires Cenvat reversal or duty refund alongside VAT/CST liability.
Transfers of imported raw materials sold "as such" are treated as inputs cleared as such, requiring reversal of Cenvat credit equal to the duty originally availed (including CVD and Special Additional Duty); the sale may attract VAT/CST depending on state law. Suppliers may either include Special Additional Duty in the price and charge VAT (forgoing Customs refund) or charge VAT/CST and claim a refund of the Special Additional Duty from Customs by following the prescribed procedure. (AI Summary)
Transfers of imported raw materials sold "as such" are treated as inputs cleared as such, requiring reversal of Cenvat credit equal to the duty originally availed (including CVD and Special Additional Duty); the sale may attract VAT/CST depending on state law. Suppliers may either include Special Additional Duty in the price and charge VAT (forgoing Customs refund) or charge VAT/CST and claim a refund of the Special Additional Duty from Customs by following the prescribed procedure. (AI Summary)