4 % SAD /ADDN.DUTY CAN BE PASS ON

[Salil Patel]

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.

AI Summary

Manufacturers can pass on 4% Special Additional Duty in invoices when transferring goods between their own units. A query was raised about whether a manufacturer can pass on the 4% Special Additional Duty (SAD) or Additional Duty in an invoice when transferring goods to their own unit. Two responses were provided. The first confirmed that it is permissible. The second elaborated that when clearing cenvated inputs between units of the same manufacturer or externally, the said credit of SAD can be passed on, as there is an obligation to pay duty equivalent to the credit taken on the inputs upon receipt.