Sp Ad Duty

[Avinash Bhavsar]

Dear Sir,

We red the Dealer Inv in it Sp. Ad. Duty & other dealer bill after Excise duty they charge CVD, can we avail the duty or not.

Regards,

Avinash Bhavsar

 

[YAGAY andSUN]

Yes, you can avail the Credit.

[Avinash Bhavsar]

Dear Sir,

Both Credit Sp Ad. Duty & CVD

 

[YAGAY andSUN]

Yes, you can avail the both (provided you use said goods in the manufacturing of finished goods or remove as such on equivalent reversal of CENVAT credit) .  In the case of import, SAD is in lieu of VAT and CVD.

AI Summary

Cenvat credit eligibility for special additional duty and CVD when goods used in manufacture or reversed. Special Additional Duty and Countervailing Duty charged on dealer invoices are eligible for CENVAT credit provided the goods or input services are used in manufacture of final products or, if removed as such, an equivalent CENVAT credit reversal is effected; for imports, SAD operates in lieu of local sales tax or VAT while CVD remains a duty component but both follow the same credit and reversal conditions.