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Clarification - Payment of SAD refund when the import has taken place prior to 1st July, 2017 (i.e. SAD on import has been paid prior to 1st July, 2017) and the sales of the imported goods have effected on or after 1st July, 2017 i.e. during GST regime

Circular No.ES/307/2017-18                                                                      March 06, 2018

To: Members of the Council

Sub: Clarification - Payment of SAD refund when the import has taken place prior to 1st July, 2017 (i.e. SAD on import has been paid prior to 1st July, 2017) and the sales of the imported goods have effected on or after 1st July, 2017 i.e. during GST regime

Dear Member,

We would like to inform you that Sahar Air Cargo Complex has issued Public Notice No.54/2018 dated February 16, 2018 on the above subject.

Your kind attention is invited to the Notification No. 42/2017-Cus dated June 30, 2017, Notification No. 102/2007-Cus dated September 14, 2007 & Notification No. 93/2008 dated August 1, 2008 regarding refund of 4% Additional duty of Customs (generally referred to as "SAD") and also, Sahar Air Cargo’s Public Notices Nos. 28/2008 dated December 16, 2008 and 01/2009 dated February 19, 2009 and Facility Notice No. 05/2015 dated July, 19, 2015.

To give effect for refund of 4 % SAD under GST regime, enabling amendments were made in Notification No. 42/2017-Cus dated June 30, 2017, which was applicable to the goods which were imported on payment of SAD and were being sold after payment of appropriate GST, instead of VAT/CST, in GST regime.

Refund claims submitted by importers were being processed in terms of the said Notification No. 42/2017- Cus dated June 30, 2017.

Now, in order to streamline the procedure for processing refund claims filed to avail refund of 4% SAD (paid prior to July 1, 2017 and sales made thereafter), importers are now required to submit following documents/declaration which are annexed to the Public Notice No. 54/2018:

(i)        "Annexure — A"                   (Calculation work sheet)

(ii)       "Revised Annexure — B"   (Self declaration by the importer)

(iii)      "Revised Annexure — C"   (Summary of sale invoices) 

(iv)      "Revised Annexure — E"   (Certificate by C.A.)

(v)       The importers are also required to submit evidence/proof of payment of IGST or

CGST + SGST/UTGST as the case may be.

The procedure as prescribed under Public Notice No. 28/2008 dated December 16, 2008 and Public Notice No. 01/2009 dated February 19, 2009 and Facility Notice No. 05/2015 dated July 19, 2015 should continue to be followed for refund claims, where goods are sold before July 1, 2017.

Members may kindly make a note of the above and do as advised.

Thanking you,

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR

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