Solar inverter exemption under the "solar power generating system" entry was upheld for CVD benefit.

A solar inverter imported by the respondent was examined against the exemption entry for "solar power generating system" under Notification No. 12/2012-C.E. The tribunal looked to the function of the goods and the scope of the notification for non-conventional energy devices or systems, and found that the inverter generated electricity when exposed to sunlight. On that basis, it was treated as answering the description in the exemption entry, so CVD exemption was available. The Revenue's challenge was rejected, and the order granting exemption was sustained.

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Issues: Whether a solar inverter imported by the respondent fell within the description of "solar power generating system" under Notification No. 12/2012-C.E. dated 17-3-2012 so as to qualify for exemption from CVD.

Analysis: The notification granted exemption to non-conventional energy devices or systems specified in the relevant list, and the entry covering "solar power generating system" was examined against the function performed by the imported goods. On the facts, the imported solar inverter was found to generate electricity when exposed to sunlight and thus to answer the description used in the exemption entry.

Conclusion: The imported goods were held to fall within the exemption entry, and the Revenue's challenge to the grant of benefit was rejected.

Final Conclusion: The impugned order granting the exemption was sustained and the Revenue's appeal did not succeed.

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