9911796707
TMI Blog2022 (7) TMI 1495X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gulations, 1986 subject to fulfilment of conditions prescribed therein?' 2. The applicant is engaged in the business of setting up of solar power plants and generation of electricity for sale. The applicant seeks to import various equipment and raw materials such as solar cells, solar modules, solar panels, solar glass, aluminium frames etc. The applicant is planning to setup solar power plants in the state of Maharashtra with a view to boost the investments in the region. For setting up such plants, the applicant would be importing various equipment as mentioned above and they estimate that around 60% of the total capital investments would be imported from outside India. 3. In their application, the applicant has indicated that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with the jurisdictional custom house in the manner specified in clause 5. Clause 5 of the said regulations provides for the procedural protocols of registration of contracts, and the salient procedural requirements are prior intimation to the proper officer at the intended port of import, specification of details like the project location, description of the articles to be manufactured, produced, mined or explored; the installed or designed capacity of the plant or project etc. The proper officer, on being satisfied that the application is in order, is required to register the contract. The application is required to be accompanied by the original deed of contract along with the import licence, if required, and an approved list of items f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r a private sector project would be entitled for project import benefits, and two - whether a solar power project falls within the ambit of a power plant/transmission project. 9. The applicant contends that neither the heading 9801 nor the project import regulations place any restriction on who should set up projects and that projects by any public sector undertaking, government entity or any private sector undertaking would be eligible for benefit subject to fulfilment of prescribed conditions. I can have no disagreement with the applicant on this issue. When law doesn't place any restriction it would be absolutely untenable for anyone to place any such restriction. Therefore, even though the applicant is a private sector entreprene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of silicon, one layer is positively charged and the other negatively charged, forming an electric field. When light energy from the sun strikes a photovoltaic solar cell it energizes the cell and causes electrons to come loose from atoms within the semiconductor wafer. Those loose electrons are set into motion by the electric field surrounding the wafer and this motion creates an electrical current; c) The solar panels work efficiently to transform sunlight into electricity, called direct current (or DC) electricity. The same is then converted into alternating current (or AC) for use with the help of inverters; d) Once the solar energy has been converted from DC to AC electricity, it runs through electrical panel and is distri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. 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. In view of the aforesaid conclusions, the question raised before me, i.e., 'Whether 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?' is required to be answered in the affirmative. I rule accordingly. - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
