Refund of cv 3(5)

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This query is : Resolved

karun (Querist)

22 February 2014 MY COMPANY IS A FIRST STAGE DEALER AND IMPORTED CERTAIN MATERIAL IN APRIL 2012 AND OCTOBER 2012.

THE MATERIAL WAS SOLD WITHOUT TRANSFERRING SPECIAL ADDITIONAL DUTY CVD 3(5).

MY QUERY IS THAT CAN I TAKE THE REFUND OF EXCISE DUTY CVD 3(5) NOW?

Arun Kumar Singh

Arun Kumar Singh (Expert)

23 February 2014 If you have not transfer the SAD to your client then you are eligible to refund of SAD if you have paid the sales tax/VAD at the time of sale of goods.

Message likes : 1 times

karun

karun (Querist)

04 March 2014 Thanks sir, but i wanted to know that as one year has passed from the relevent date of payment of import duty,

can i claim the CVD3(5) now as i have not passed it to the client.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

20 July 2025 Regarding your query on refund of CVD under section 3(5) (SAD) for materials imported in April and October 2012 but sold without transferring the duty to the client:

Key points:
CVD under section 3(5) / SAD is a duty paid on imported goods that a first-stage dealer usually transfers to the buyer.
If you have paid the CVD but did not pass it on to your customer, you may be eligible for a refund of the CVD, subject to conditions.
One crucial condition is that you must have paid the local sales tax / VAT on the value including the CVD amount at the time of sale.
About the time limit for claiming refund:
As per Section 11B of the Central Excise Act, the claim for refund of duty should be made within one year from the relevant date.
The relevant date for CVD refund on imports is generally the date of import or the date when the duty was paid.
Since you mention more than one year has passed since the import date (April and October 2012), you are likely barred from claiming the refund now due to time limitation.
What you can do:
You can file a refund claim for CVD within one year from the date of import/duty payment only.
If the refund period has expired, you may request the department for condonation of delay citing valid reasons, but the success of such request depends on facts and discretion of the department.
It is advisable to consult with your jurisdictional officer and explore options, but generally refund claims beyond one year are difficult.

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