4% SAD - unshown in balance sheet

[GANAPATHY RAJENDRAN]

whether refund 4% SAD can be allowed by customs when the balance sheet does not show as ' refund receivable'.

[Surender Gupta]

It is true that if the amount is shown as refund receivable in the balance sheet, it is an evidence that the burden has not been passed on to the buyer. But if you see the conditions of the notification no. 102/2007, importer has to mention on the face of invoice that no cenvat credit is available for SAD. I think, this conditions itself is sufficient to get the refund of SAD.

AI Summary

Importers Eligible for 4% SAD Refund Without Balance Sheet Entry if Invoices State No CENVAT Credit Available. A query was raised regarding the eligibility for a refund of 4% Special Additional Duty (SAD) when it is not shown as 'refund receivable' in the balance sheet. The response indicated that while showing the refund as receivable in the balance sheet serves as evidence that the burden hasn't been passed to the buyer, the conditions of notification no. 102/2007 require importers to state on invoices that no CENVAT credit is available for SAD. This condition is deemed sufficient to qualify for the refund.