4% ACD/SAD Refund Procedures under Notification No. 102/2007 Custom

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  • 15 Aug 2014
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THE Customs Notification 102/2007 dated 14.9.07 providing for exemption of 4% Special Additional Customs Duty leviable in terms of Section 3(5) of Customs Tariff Act 1975 in respect of goods imported for sales as such, by the importers to others was purportedly issued to provide a level playing field to traders vis-à-vis manufacturers who do not pay local sales tax / VAT while importing goods directly for their own use and to remove the burden of double tax on such type of importers as held by Hon’ble Gujarat High Court under 2014 (299) ELT 263 (Guj.) CCE Vs. POSCO INDIA DELHI STEEL PROCESSING CENTRE P. LTD.

The exemption/procedures contained in this notification shall be given effect if the following conditions are fulfilled:

(a) the importer of the said goods shall pay all duties, including the said additional duty of customs leviable thereon, as applicable, at the time of importation of the goods;

(b) the importer, while issuing the invoice for sale of the said goods, shall specifically indicate in the invoice that in respect of the goods covered therein, no credit of the additional duty of customs levied under sub-section (5) of section 3 of the Customs Tariff Act, 1975 shall be admissible;

(c) the importer shall file a claim for refund of the said additional duty of customs paid on the imported goods with the jurisdictional customs officer;

(d) the importer shall pay on sale of the said goods, appropriate sales tax or value added tax, as the case may be;

(e) the importer shall, inter alia, provide copies of the following documents alongwith the refund claim :

(i) document evidencing payment of the said additional duty;

(ii) invoices of sale of the imported goods in respect of which refund of the said additional duty is claimed;

(iii) documents evidencing payment of appropriate sales tax or value added tax, as the case may be, by the importer, on sale of such imported goods.

(f) the time limit for filing refund is 1 year from payment.

The jurisdictional customs officer shall sanction the refund on satisfying himself that the conditions referred to in para 2 above, are fulfilled.

Check List of Documents:

1. Form of Refund Application

2. Calculation / Worksheet for refund

3. Self Declaration/ undertaking

4. All original challans evidencing payment of Vat with details of invoices.

5. Original Charted Accountant Certificate

6. Duplicate Bill of Entry (Importer’s Original-Copy)

7. Original TR-6 Challan for payment of Custom Duty.

8. Copies of purchase invoice & bill of lading.

9. List containing invoice nos. & amount of VAT/CST paid on imported goods for which refund is claimed.

10. Authority Letter.

11. Copy of notification No. 102/2007-Customs dated 14.09.2007

12. Original VAT/CST deposited certificate issued by the VAT Department.

13. Self attested photocopy of Agreement in case of High seas sales (if any).

14. Self attested Duplicate/Carbon Copies of Sales Invoices  (B/E No. must be mentioned on the Sales Invoices and following stamp must be their on the sales invoices)

“NO CREDIT OF THE ADDL. DUTY OF CUSTOMS LEVIED UNDER SUB SECTION (5) OF SECTION 3 OF THE CUSTOMS ACT 1975 SHALL BE ADMISSIBLE”

The procedures and clarification can also be sought from Circular No. 16/2008 Cus dated 28.04.2008 & 6/2008 Cus. dated 13.10.08. The refund is also admissible on ‘DEEMED SALE’ subject to satisfaction and litigation. Also, It depends upon the satisfaction of issuing authority.

(Rishi Chanan, Advocate, Mob:-098158-28244)

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91 Comments

  1. SUNIL AHUJA says:

    please clarify for sad refund claim it is necessary that product description of purchase and sale invoice will be same it can not be sale in other format like kit.

      Reply
  2. Hitesh Gupta says:

    Dear sir our BOE more than one year and the amount of additional duty around more than 3 lacs.
    Is that possible we can file for refund,if yes tell me how is that possible.Pls contact me on 8743880084

      Reply
  3. amit says:

    Hi sir/madam..
    If a Delhi party has imported goods from Gujarat port and and has sold the goods all over the India.. can he cailm the ‘sad’ amount from Kolkata customs

      Reply
  4. Pravin says:

    Hello Sir,
    If A imported raw material (10 different single parts) from B Germany to India. A assembled these 10 single parts on assembly line and make one single new identical part which is excisable and export to B from India to Germany. Can we get refund 100% import duty was paid at the time of import of raw material.

      Reply
  6. BIPIN CHADVA says:

    i am bipin chavda from ahmedabad gujarat
    we are (CHAVDA CONSULTING) consulting base work in custom sad refund4% proced. like icd ahmedabad,mundra port-kundla port,pipavav port,chennai port ,nhsheva port mumbai, all kind of documentation and fast proced for refunds,if you have any kind of port applied to refund please contact on me.

    Bipin Chavda
    7818819661/7600379125

      Reply
    1. Saurav chopra says:

      Our item is fabric which is vat free. Can we still claim Sad?
      Our material is fully sold within one month and sales tax return is also filed timely

        Reply
      1. VIJAY KHUNT says:

        i am importing products and trading, my shipments clearing either at ahmedabad ( air / sea ) or at delhi ( air ), i filing 4% SAD for ahmedabda, as i am local but i am looking consultant for delhi shipments ( All documents are ready ), If any body can do, please contact on my mobile no. 7600707081 or email ID : zealautomation1@gmail.com

        VIJAY KHUNT

          Reply
  10. R.K.IMPEX, CHENNAI says:

    WE ARE CONSULTANT FOR SAD REFUNDS CLAIM FOR CHENNAI SEA & AIR ANY OLD FILES PENDING IN CHENNAI CUSTOMS HOUSE PLEASE CALL +91-98401 55702 RAMESH JAIN
    R.K.IMPEX
    OLD NO.130, MINT STREET.
    4TH FLOOR, SHREE CENTER
    SOWCARPET, CHENNAI – 600079.
    CELL NO-+91- 98401 55702
    LAND LINE NO- 044- 25293949
    MAIL ID: rkimpexgroup@yahoo.in

      Reply
  12. venkat says:

    Dear All,

    We are the Methanol Importer and using for manufacturing purpose .
    we pay 4% SAD , after manufacturing we sell final product with cst / vat payments.

    shall we go for refund , since 4% exempted if you pay vat / cst
    regards
    venkat

      Reply
    1. neelotpal chaudhary says:

      Dear Venkat

      only importer or trading company can do for sad refund , one and only one condisation when billing invoice make without ad duty pass on, and stock will be finished on behalf of particular purchase

      +91 7042948917

        Reply
  13. venkat says:

    Dear All,

    We are the Methanol Importer and using for manufacturing purpose .
    we pay 4% SAD , after manufacturing we sell final product with cst / vat payments.

    shall we go for refund , since 4% exempted if you pay vat / cst
    regards
    venkat

      Reply
  16. Karuna Mishra says:

    Hi, I am Karuna from Prakar group specialised in SAD refund from BPT, Pipavav , JNPT and other. as per guidelines 4% ACD/SAD Refund Procedures under Notification No. 102/2007 Custom call me 7045179954

      Reply
  20. Sudarshan says:

    Sir My name is Sudarshan and my Mail ID is sudubk@gmail.com, I hv a case wherein it is a Medical Device whcih do not hv either Sales tax or VAT and No Excise Duty also The Import Duty includes 4% SAD , It is a fully manufactured device and they are importing and selling them to Hospitals, Can we claim SAD Refund in this case, Pl clarify

      Reply
  21. Hitesh Thakker says:

    Hi, I am advocate practicing specially in Customs SAD refund claims for Mundra & Kandla customs. Kindly contact me on

    HITESH S. THAKKAR
    Advocate & Tax consultant
    Gandhidham-Kutch
    Mo :- +91 98981 38625

      Reply
  22. shishu says:

    can i submit sale invoices cd for electronic media but not mention “no credit of the additional duty of customs leveid under sub section(5) of section -3 of customs tarrif act shall be admissible” at sample invoice above matter are mentioned.

      Reply
  23. Tarun sharma says:

    For clarifying ur sad refund file in TuglAkabad and parpaeganj Icd & mundra Icd. Contact me. Fees reasonable.
    Mobile no:8285831641/8126116503

      Reply
  24. amit Upadhyay says:

    I am DGFT consultant. you can please contact me for issuance of Importer Exporter Code in any city of india. my no. is 9899225765, 9013217265

      Reply
  30. vivekanand says:

    iam a accounts manager of mftr unit

    i need to claim my SAD which is not claimed earlier.

    SAD period exceeds 1 year more, kindly suggest us how can i move further

      Reply
  32. GAJANAN says:

    DATE : 19.11.15

    DEAR SIR,

    I AM MERCHANT EXPORTER AND IMPORTER FOR AGRO COMMODITIES AND ALSO WE ARE CONSULTING DGFT LICENCES.

    REGARDS,
    GAJANAN : 9004902970

      Reply
  34. Vaidyanathan Sundaram says:

    Dear All,

    kindly advice whether for SAD refund, the amount of SAD refund should be shown in our Balance Sheet as Provisional to be receivable.

    regards
    Vaidyanathan

      Reply
    1. zakir says:

      It is AD not RD AD stands for Additional duty of 4 % which is paid while doing the imports of goods and can be claimed back post sales

        Reply
  40. sanjay says:

    hello, everyone,
    if you guys take licence from Legal metrogoy and your product comes under prepakakaged good intened for retail sale, u r fully exmepted from Sad duty, no need to pay sad duty then

      Reply
  43. Santhosh kk says:

    Sir, I am from kerala and importing some goods from china. anybody can help me how can i get back additional duty and what is the procedures

      Reply
  44. Santhosh kk says:

    Sir, i am from kerala, i am importing some good from china and giving additional duty for this. any body can help me how can get back additional duty and what is the procedutures?

      Reply
    1. Lalit Jain says:

      Dear Mr, there is no provision for manufacturers to claim the refund of accumulated 4% ACD/SAD instead we suggest that you import as a trader in your trading firm, sell the goods to the manufacturing unit without passing 4% ACD, and then you are elligible for the refund in your trading unit.

        Reply
  46. Dhawal Vora says:

    Sir,

    I have imported an item and paid the duty along with SAD.

    Some of my customers are registered under excise and I have passed SAD to them. While some customers are not under Excise and thus I have put the stamp on the invoice stating credit will not be allowed. My query is as follows

    Total Quantity Importered is 10000 Kgs where 12.5% component is Rs.18 and SAD component is Rs.6.
    I have sold 3000 Kgs under excise and passed on Rs.24 as excise.
    Can I claim SAD refund on the balance 7000 Kgs?

    Also, please let me know if any Consultant is available for Mumbai.

      Reply
    1. Sugandha says:

      Hello Mr. Dhawal Vora,

      You can apply for the balance qty. i.e. 7000 kgs for sad refund. The time limit for filing refund is 1 year from bill of entry date.

      Regards
      Sugandha

        Reply
  47. MOHAMMED NAJIMUDDIN says:

    Hi

    We import a printer from Brooklyn USA in the month of March 2015 unfortunately it work for a month and stuck to an error code. so manufacturer approved replacement of the printer.
    I want my import duties back
    what will be the procedure?

    regards
    Mohammed N

      Reply
  50. Harak says:

    we are a manufacturer and import the raw materials and use the same in manuracturing process of our finished goods. Now, already accumulated duty credit in Cenvat Credit Account and not utilise 4%ACD paid on import of raw materials. Now, my question is can such manufacturer claim refund of such accumulated 4% ACD?

      Reply
  51. Bharat k says:

    If company having three branch’s trading unit manufacturing unit service agency vat tin no is same for all the unit they deposit the vat clubbing three unit if he wanted to claim the sad amount in the statement which vat amount he should how much used in trading div

      Reply
  52. ajay kumar pal says:

    sir please give answer if know
    if party apply sad refund.
    and his sale invoice date spouse 29.04.2015 but coc (customs out of charge) done in 30.04.2015 but duty deposit on 27.04.2015.
    whats a solutions my file is ok or not
    ???????????????

      Reply
  56. Shubham Keshari says:

    Dear Sir
    Agar Sad 4% Ka Refund Claim 1 Year Ke Bad Kiya Jaye To Wo Expire Ho Jata Hai Per Kya Usko 1 Year Ke Bad Fir Se Claim Kiya Ja Sakta Hai Agar Kiya Ja Sakta Hai To Sir Kis Section Ke Ander Fir Se Claim Kar Sakte Hai

    Please Tell Me & Our Good Friends

    Thank You

      Reply
  59. Kamal says:

    I have not put the stamp of

    “No Credit of the Additional Duty of Customs
    Levied Under Sub Section (5) of Section 3 of the
    Customs Tariff Act. 1975 Shall be admissible.”

    But I have definitely not passed on the ADI to my customers. Will that mean I cannot claim the ADI refund ?????

      Reply
  60. Shashidhara says:

    Dear Sir

    We have two sister concern companies one company has been importing and same consignment will sending to another company with vat 5.5%tax is involved in the Sales invoice.

    Further, S.A.D. is eligible to get refund? pls help us.

      Reply
  61. Chinmay Gailad says:

    Dear All,

    I am a watch collector and I order a lot of stuff from Amazon or Watchshop for my personal use. Sometimes they charge a lot of duty on it sometimes they don’t. I have kept receipts of every payment till date and I have the Postal order tracking no.s for each order. Also if I understand correctly, I should get a full refund of the amount paid because of the following reasons:

    1. None of the watches are Automatic. They are all battery operated.
    2. They are not for furthur sale. They are for my personal usage.

    Can anyone please explain if I am understanding this correctly? If I am wrong, Can someone please explain how much amount will I get back from this? Following are the charges levied by customs on me till date:

    1. Order Value = 18,900(Approx.) Duty Levied = Rs. 3900 (Approx.)
    2. Order Value = 8,900 (Approx.) Duty Levied = Rs. 3282 (Exact) by DHL couriers

    How should I tackle this? What should I do to get this money back? Requesting the help from you all at the earliest.

    Regards,
    Chinmay GAilad

      Reply
    1. Deepak says:

      Hi Chinmay,

      Please note that this is not that you will get refund if you have paid customs duty, if every one gets refund then why should government collect it?
      This refund is applicable for resellers and not end users.

        Reply
  65. DEVIDAS says:

    Dear Sir,
    A merchant Indian exporter ( A ) has an order for GAS GENSET CONTAINERISED From Nigeria ( B ), A will buy the OPEN GEN SET from Germany Manufacturer ( C ) To full fill export order Open Gen set has to be convert in CONTAINERISED GEN SET , How ( A ) Will save the custom duty .

      Reply
  67. S R AGRAWAL says:

    Refund is available only to the importers who sell the imported goods after paying VAT because 4% SAD is charged in lieu of VAT. To give relief to double taxation this refund is being allowed. Any importer who utilize the goods as input is eligible to CENVAT credit of SAD and he is otherwise not required to pay VAT as their is no transaction of sale of such goods. As per Notification he is not entitled to refund of accumulated SAD.

      Reply
  68. Ajay Chandarana says:

    If i had import 4 ,5 items in one Bill of Entry and i had cleared full quantity of 2 Items , then should i claim for that cleared 2 3 items or i have to claim when my full Bill of Entry got cleared.
    Kindly clarify that how i can proceed for that Bill of Entry Claim.

      Reply
  70. saurav kumar says:

    Hi,

    I want to apply foe SAD refund can for my company where i m working can u please tel me the exact procedure or help me out to file the SAD refund.

    thanks & regards

    Saurav kumar

      Reply
  72. pranav says:

    Get 4% S.A.D (SPECIAL ADDITION DUTY) REFUND WITHIN SHORTEST TIME PERIOD With ALL DOCUMENTATION FACILITY
    @ very Nominal Charges.
    Call – +91 8108073353

      Reply
  73. Rishi Chanan says:

    Dear Rajesh,

    u can avail cenvat credit of excise portion, but there are extreme chances of show cause notice but with ur elaborative example.. u can have a favour from Tribunal.

      Reply
  74. Rajesh, Mumbai says:

    Dear Author,

    I have a Logical Query.

    On an import of Rs.100/-

    Importers pay 10% Custom Duty (Rs.10).

    It becomes 110/-(100+10)

    On this, further Excise Duty @ 12% paid (Rs.13.2)

    It becomes Rs 123.2 (Rs.110 + 13.2)

    Further,On Custom and Excise duty portion i.e.Rs.23.2 (Rs.10 + 13.2), A total 3% cess of Rs.0/696 is paid which is 0/30 on custom and 0/396 on Excise.

    Further 4% ACD/SAD i.e Rs.4/928 is paid on Rs. 123.2 which is refundable to importers resellers.

    Hence Total Taxes of Rs.28.824 on an import of Rs.100 goes to government as follows.

    Custom Duty Rs.10/00
    Excise Duty Rs.13.20 (Cenvat credit allowable)
    Cess on Custom Duty Rs. 0/30
    Cess on Excise Duty Rs. 0/396
    ACD/SAD Rs. 4/928 ( Refundable as mentioned above)
    ___________
    Total Rs.28.824

    My Query : Why Cess of Rs.0/396 paid on Excise is not allowed as cenvat.?

    In all cases of Excise duty and Service tax there is cess of 3% which is allowed as Cenvat credit but why not for aforesaid.I hope someone will clarify with logical reply.

      Reply
  75. Ashok Aggarwal says:

    CBEC has issued Circular No. 18/2010-Cus dated 8th July, 2010 clarifying that the certificate issued by the statutory auditor or CA will be accepted and production of Balance sheet or Profit & Loss account will not be insisted. Moreover it has been clarified that the sanctioning authority will not call for any documents other than those listed therein. However in practice officers at different custom houses keep asking various different documents taking plea that in the list the last item says “any other document considered necessary for sanctioning the claim”.

    Unfortunately there is no real protection to the officers in case any unscrupulous claimant takes undue benefit and there is no accountability for delaying sanction of claim on flimsy grounds and for asking unnecessary documents in violation of Board’s instructions. Hence number of pending claims is going up in all Custom Houses. This situation is conducive for flourishing of a few middlemen at each Custom House who get claims processed quickly for a fee in league with certain officials with vested interests.

    Circular No. 6/2008-Cus says that interest on refunds under notification no. 102/2007-Cus will not be admissible but this portion of the circular has been quashed by Hon’ble Madras High Court in case of KSJ Metals (Impex) Vs Under Secretary [2013(294)ELT 211(Mad)]. hence the department is liable to pay interest from the expiry of three months from the date of filing of claim till date of payment.

      Reply
  77. Rishi Chanan says:

    Dear Nikunj,

    The refund is only available on the products which are imported for further sale. The credit accumulated can not be available as refund but it can be used for discharging central excise liability.
    Regards
    Rishi Chanan

      Reply
  78. Deepak says:

    HI,

    If the manufacturer is claiming credit then he will not be able to claim refund as well. The Scheme of refund is for those importers who cannot claim the amount as credit.

    Regards,
    Deepak

      Reply
  79. Nikunj Patalia says:

    One manufacturer who imports the raw materials and use the same in manuracturing process. Now, he has alreasy accumulated duty credit in his account and not uses 4%SAD paid on import of raw materials. Now, my question is can such manufacturer claim refund of such accumulated 4% SAD ?

      Reply
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