Refund of 4% Addl.Duty(Imports) (Custom)

This query is : Resolved

anckoora

( Author )
23 July 2011

Dear Sir,

Mine is a Partnership Firm, having IEC Code, based in Gujarat. We import Vaccume Tube Solar Collector (Solar Glass Tubes) from China. HSN 85439000 or 84199010. After import, we sell it to Solar Water Heater Manufacturers in Gujarat & charge 4% Gujarat VAT & 1% Addl VAT (Total 5%).

Can I claim refund of 4% Addl Import Duty paid at the time of Import ? If yes, under which notification ? Also provide me proceedure for claiming the same.

Thanks
anckoora.

RAMESH KUMAR VERMA

( Expert )
23 July 2011

Imports into India are charged with an Additional Duty of Customs (or Special Additional Duty – SAD as is popularly known) at the rate of 4% and is leviable under sub-section (5) of Section 3 of the Customs Tariff Act, 1975. This is charged on the total value of imports including CIF + Basic Customs duty + CVD. This duty is to countervail sales tax leviable on the sale of goods in India.

The SAD can be taken CENVAT credit of by the manufacturers. However the import traders do not have the same facility (if they are selling to non-manufacturers). This 4% SAD is refundable to the import traders in pursuance of Notification No.102/2007-Customs dated 14.9.2007 subject to fulfillment of various conditions and procedure as laid down in various subsequent circulars, instructions and public notices.

FOR MORE INFO:-

http://indiatax.wordpress.com/2008/04/29/procedure-for-claiming-refund-of-4-per-cent-sad-on-imports/

RAMESH KUMAR VERMA

( Expert )
01 August 2011

thanks mr. anckoora ji for participate in ca club india..........