Home Case Index All Cases Customs Customs + AAR Customs - 2022 (7) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (7) TMI 1495 - AAR - CustomsProject Import - Classification of imported goods - solar power project would fall within the ambit of a power plant/transmission project or not - eligibility for concessional rate of customs duty under N/N. 230/1986-Cus., dated 03.04.1986, as amended - HELD THAT:- The applicant is in the business of generating electricity using PV cells and modules, therefore, they contend that the proposed solar plant projects to be setup in the state of Maharashtra would squarely fall within the purview of term 'power plant' and would be eligible for benefit under heading 98.01 of the first schedule to Customs Tariff Act read with Project Import Regulations subject to fulfilment of the prescribed conditions and procedure therein. The applicant has also stated that the benefit of project import regulations has been extended to many private sector undertakings who have executed power projects. The law doesn't restrict the concessional rate of import duty on project imports to any specific power plant. Electrical power can be obtained from different sources, e. g., hydro-electric, thermal, nuclear, wind, solar etc. The entry at sr. no. 3 of the table annexed to the notification no. 230/86-Cus., dated 03.04.1986 only shows that the sponsoring authority in case of power plants and transmission projects would be the secretary to the government of the state/union territory dealing with the subject of power or electricity. Therefore, the clear language of the notification is that the exemption would be available to all power plants. An interpretation to restrict such benefit to any particular type of power plant would therefore, be perverse. The applicant, being a private undertaking and engaged in setting up of solar power plants is eligible to import goods at concessional rate of duty under sub-heading 98010013 of the first schedule to the Customs Tariff Act, 1975 (51 of 1975) read with project Import Regulations, 1986 subject to fulfilment of conditions prescribed therein.
|