Indirect Tax Alert

Vide Instruction No.: 13/2022-Customs dated 9 July 2022, CBIC had stipulated that solar power generating units fall outside the scope of the Manufacturing and Other Operations in Warehouse (No. 2) Regulations, 2019. Consequently, the Customs officers were directed that the permissions granted to solar power generating units to operate under Section 65 of the Customs Act, 1962 (Customs Act) need to be reviewed immediately by taking necessary follow-up actions and no further permissions should be granted to solar power generating units for operating under Section 65 of the Customs Act. The proceedings initiated pursuant to the aforesaid instruction and the validity of the instruction was challenged before the Delhi High Court. The Delhi High Court has now passed an order quashing the validity of the aforesaid instruction and the resultant proceedings.

We, at BDO in India, have summarised the aforesaid ruling. We hope you will find it timely and useful.

Download