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Can ACD be passed on consumers through cenvatable invoices?

Ajay Singhania (Proprietor) (34 Points)

27 November 2007

Dear All,

I have a query regarding ACD. After issuance of customs notification no. 102/2007 dated 14/09/07, Can additional custom duty on imported goods be passed on the consumers through cenvatable invoices? Here in the market, there is rumour that w.e.f 14/09/07, Importer can not pass on ACD through Cenvatable invoices. Is it correct?? Please reply my query...... & also please let me know from where can i get full information realted this topic?

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2 Replies

Dayal (Gen. Manager - Indirect Taxation) (3434 Points)
Replied 27 November 2007

The finance ministry has withdrawn the special countervailing duty (CVD) on VAT-paid imports. Importers will get a refund on the amount paid as CVD on providing proof that they have paid the value-added tax or sales tax and also the same has not be passed on to the Manufacturer / Importer as Cenvat credit. "The central government exempts goods falling within the First Schedule to the Customs Tariff Act, 1975 when imported into India for subsequent sale, from the whole of the additional duty of customs leviable," a notification has been issued by the Central Board of Excise and Customs. The CVD, levied at 4% is also known as the special additional duty (SAD) and is levied to offset the effect of central excise