TaxTMI 
TaxTMI 
DEAR SIR
WHEN APLICABLE OF AED , SAD AND ELIGIBLE FOR CENVAT CREDIT
WITH REGARDS
HITENDRA DAVE
IMPORT ADDL DUTY 4% APPLICABLE
31 May 2012 
1 Reply 
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SAD on imports: CENVAT credit available when used in manufacture; refund may be claimed when such imports are sold.
SAD on imports substitutes local VAT; SAD paid on imported inputs used in manufacture qualifies for CENVAT credit. If such SAD-paid imports are sold as such, a Customs refund may be claimed after intimating the buyer's TIN and sale particulars. Capital goods attract full CENVAT credit in the initial year of use, subject to relevant CENVAT rules and compliance. (AI Summary)
SAD on imports substitutes local VAT; SAD paid on imported inputs used in manufacture qualifies for CENVAT credit. If such SAD-paid imports are sold as such, a Customs refund may be claimed after intimating the buyer's TIN and sale particulars. Capital goods attract full CENVAT credit in the initial year of use, subject to relevant CENVAT rules and compliance. (AI Summary)