The Petitioner had obtained deferral of custom duty and IGST by operating under MOOWR Scheme. The CBIC vide Instruction No. 13/2022-Customs dated 09 July 2022 directed the concerned authority to revoke the two licenses issued by Revenue under MOOWR Scheme to the Petitioner. Further, the Instruction denied the benefit on the basis that the resultant goods, i.e. electricity, cannot be stored in a warehouse and cannot be affixed with a one-time lock to the load compartment.
Aggrieved, the Petitioner preferred a Writ challenging the aforesaid Instruction. The Petitioner argued that the Instruction is in the teeth of proviso (a) to section 151 A of the Customs Act as it directs the Custom Officer to review the licenses already granted and to not grant any further licenses in such cases. It was further argued that if the instruction is allowed to operate, Petitioner’s consignment for import of solar modules would be subjected to custom duty and IGST, contrary to the provisions of the MOOWR Scheme. The Petitioner further averred that electricity is neither subject to duty under the Customs Act, nor under the CGST Act.
In view of the above, the Delhi HC observed that the Petitioner has set up a prima facie case and the balance of convenience appears to be in favour of the Petitioner. Accordingly, the HC restrained the Revenue from taking any coercive measures against the Petitioner till the next hearing.
ACME Heergarh Powertech Private Limited v/s. CBIC [W.P (C) 10537/2022 dated 13 July 2022]
Disclaimer:
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
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