Can the credit of SAD (special additional duty) be utilized for payment of central excise duty or service tax by a manufacturer or service provider? If not, what are the barring provisions? Please reply soon.
utilization of SAD credit
vijay kumar
Debate on Using Special Additional Duty Credit for Excise Duty: CENVAT Rules Allow for Manufacturers, Not Service Providers. A forum discussion centered on whether Special Additional Duty (SAD) credit can be used for paying central excise duty or service tax by manufacturers or service providers. A participant cited the CENVAT Credit Rules, highlighting that manufacturers can use SAD credit, but service providers cannot. This point was debated, with references to authoritative texts supporting the restriction on service providers. The rationale is that SAD is meant to offset local taxes on goods, which do not apply to services. The discussion concluded with an acknowledgment of the complexity and rationale behind the rules. (AI Summary)