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TMI Blogutilization of SAD creditX X X X Extracts X X X X X X X X Extracts X X X X ..... Can the credit of SAD (special additional duty) be utilized for payment of central excise duty or service tax by a manufacturer or service provider? If not, what are the barring provisions? Please reply soon. - Reply By pradeep khatri - The Reply = Sub rule (viia) of Rule (1) 3 of the CENVAT credit Rules states that A manufacturer or producer of final products shall be allowed to take credit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the additional duty leviable under SUb-section (5) of Section 3 of the Customs Tariff Act. Provided that a provider of taxable service shall not be eligible to take credit of such additional duty. - Reply By Reshma kochar - The Reply = Hi, Pradeep, I didn't find that aforsaid provision in CENVAT credit rules. Please update me... - Reply By pradeep khatri - The Reply = Ms. Reshma, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... You can find this information on R.K. Jain's - Central Excise Manual 52nd edition (2010-2011) on page no. 2.26 entry no. viia of Rule 3 of the CENVAT credit Rules, 2004. Best Regards, Pradeep Khatri - Reply By Reshma kochar - The Reply = Thanks pradeep, but its not in cenvat credit rules published on the website(tax managment india) Rule 3 says both manufacturer and service providers are e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ligible for the same. - Reply By pradeep khatri - The Reply = Ms. Kochar, Further, you can refer Taxmann's Central Excise Law Procedure - Written by Mr. V.S.Datey, 17th Edition, chapter no. 24, para 24.1, line no. 9 which says " Additional Customs Duty u/s 3(5) of the Customs Tariff Act w.e.f. 1-3-2005 (SAD or Special CVD). This credit will not be available to service providers. Further, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is an old saying that ' When in doubt, refer a book' . Best Regards, Pradeep Khatri - Reply By Alok Kumar - The Reply = ms reshma, you are correct, the same has not been mentioned in the TMI WEBSITE. the rule has been rightly quoted /cited by our learned brother and there should not be any room for confusion on the subject considering the specific mention of the said restric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in sub rule 4 of said rule. thanks, alok kumar - Reply By pradeep khatri - The Reply = Ms. Kochar, Restriction on utilization of 4% Additional Customs Duty - Additional Customs Duty paid u/s 3(5) of customs tariff act can be utilized for payment of any duty on final product but not for any output services [Third proviso to Rule 3(4) and second proviso to rule 5 of CENVAT credit Rules] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Best Regards, Pradeep Khatri - Reply By vijay kumar - The Reply = The reason for not permitting credit of SAD to a service provider is because SAD is a levy to counter local taxes on goods and services do not suffer such taxes. - Reply By sv bhasker - The Reply = Dear Mr vijay Your question lead to an intereting(SAD?) discussion. Your summing up giving reasons for allowing credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in excise law and not extendind SAD credit in service tax is really good. It seems that SAD is imposed by the government on the basis of request made by the trade and industry. - utilization of SAD credit - Query Started By: - vijay kumar Dated:- 12-7-2011 Central Excise - Got 9 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nagement India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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