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

Special additional duty refund may be permitted if invoice declares no cenvat credit, even without balance sheet entry. Showing the amount as a 'refund receivable' in the balance sheet evidences that the special additional duty burden was not passed to the buyer. Compliance with the notification's invoice requirement-an express statement that no cenvat credit is available for the SAD-constitutes a separate condition for claiming refund and may suffice even if the balance sheet lacks a refund receivable entry.