The importer-dealers are over the moon these days. Their SAD-ness is going to turn into happiness. Because SAD-refund has been granted to the importer by the central government which is levied @ 4% under Section 3(5) of the Customs Tariff Act, 1975 by way of refund. It is charged on sum of the amounts including CIF + Basic Customs duty + CVD.
After selling of imported goods without alteration of goods identity an importer can claim Special Additional Duty refund. Special Additional Duty is charged to countervail VAT/CST i.e. importers can claim refund after payment of VAT/CST.
Special Additional Duty Refund must be claimed within one year from payment of Special Additional Duty i.e. date of TR6 Chalan of corresponding BOE. Procedure for claiming refund
The procedure involves filing of number of documents which needs to be checked for internal consistency and inter-correlation to make set of claims. There are detailed criteria of filing claims bill of entries basis, monthly basis etc which requires extensive analysis of the documents and understanding of the commercial and taxation aspects of the supply chain.Special Additional Duty Refund must be claimed within one year from payment of Special Additional Duty i.e. date of TR6 Chalan of corresponding BOE.
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