Sad refund

If SAD Refund is not filed within prescribed time i.e. within 12 months said amount of SAD receivable should be included in cost as the same could not be filed after 12 months.

SAD REFUND HAS TO BE FILED WITH ONE YEAR FROM THE DATE OF PAYMENT OF DUTY 

I presume you had initially debited the 'SAD Refund Receivable A/c' and not 'Purchase A/c'.

If this is the case, then on failure to claim SAD Refund within 1 year, you will no longer be eligible to get the refund. 

The accounting entry would hence be [This amount needs to form part of your purchase cost] :

" Purchase - Imports A/c    Dr.

     To SAD Refund Receivable A/c "