4 % SAD /ADDN.DUTY CAN BE PASS ON

[Guest]

Is a manufacturer can pass on 4% SAD/ADDNL DUTY in an invoice prepared under Rule 9 while removing goods as such to his own unit.

[Rajagopalan Ranganathan]

Sir,

The reply is 'yes'.

[Suryanarayana Sathineni]

If you are clearing the cenvated inputs from one unit to the other unit of the same manufacturer or to outside also you can pass on the said credit of SAD since you are under obligation to pay duty equivalent to the credit taken on the inputs at the time receipt.

Best Regards

Suryanarayana

AI Summary

Special Additional Duty pass-through permitted when duty obligation arises; manufacturers may invoice it under applicable invoicing rules. The manufacturer may pass on 4% SAD/Additional Duty in an invoice under Rule 9 when removing goods to his own unit. When clearing cenvated inputs intra unit or to outside parties, the manufacturer can pass on the credit of Special Additional Duty because there is an obligation to pay duty equivalent to the credit taken at the time of receipt, permitting recovery of that duty through invoicing where a corresponding duty liability arises.