TaxTMI 
TaxTMI 
2022 (11) TMI 1418
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....lass, Steel Structure, etc. for setting up of solar power plants; as per Chapter Heading 9801 00 13 of First Schedule to Customs Tariff Act, 1975, import of machinery, component or raw materials, etc. required for initial setup of a unit in power project are eligible for imports at concessional rate of duty provided the same is imported in accordance with the Project Imports Regulations, 1986 (PIR, 1986, in short) made under section 157 of Customs Act, 1962 vide Notification No. 230/86-Cus. dated 3-4-1986; they intend to import solar equipments at concessional rate of duty under above chapter heading for setting up of solar power plant in the State of Karnataka; in light of the aforesaid submissions on facts, they seek an advance ruling with regard to the question of law namely: Whether applicant, being a private undertaking and engaged in setting up of solar power plant, is eligible to import goods at concessional rate of duty under chapter heading 9801 00 13 of the First Schedule to the Customs Tariff Act, 1975 read with Project Import Regulations, 1986 subject to fulfilment of conditions prescribed therein? 3.1 The applicant further states that, Note No. 2 to Chapter 98 of the....
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....(3) The application shall specify:- (a) the location of the plant or project: (b) the description of the articles to be manufactured, produced, mined or explored; (c) the installed or designed capacity of the plant or project and in the case of substantial expansion of an existing plant or project the installed capacity and the proposed addition thereto; (d) such other particulars as may be considered necessary by the proper officer for purposes of assessment under the said heading. (4) The application shall be accompanied by the original deed of contract together with a true copy thereof the import trade control license, wherever required and an approved list of items from the Directorate General of Technical Development or the concerned sponsoring authority. (5) The importer shall also furnish such other documents or other particulars as may be required by the proper officer in connection with the registration of contract. (6) The proper officer shall, on being satisfied that the application is in order register the contract by entering the particulars thereof in a book kept for the purpose, assign a number in token of....
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....ure therein. 4. The applicant vide their letter dated 4-11-2022 has made additional submissions stating inter alia that, their solar power projects squarely fall within the purview of term 'power projects' as described under chapter heading 9801 00 13 of Customs Tariff Act, 1975 read with P1R, 1986; reference is drawn to Customs module - Part IV(A)(33) of the memorandum issued by Government of India explaining provisions in the Finance Bill, 2022, wherein the concessional rate of BCD provided vide Notification No. 50/2017-Customs dated 30-6-2017 for project imports under chapter 98 was raised to 7.5% with effect from 30-9-2022 for the projects to be registered after 30-9-2022; as per the said memorandum, it has been specifically clarified that the term 'Power Projects' would also include Nuclear and Solar power; in view of above, the intention of the Government is clear to include the solar power projects within the purview of term 'power project' for the purpose of classification under Tariff heading 9801 read with Project Import Regulations; the benefit of Project Import Regulations has been given to renewable energy power plants as well such as wind powe....
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.... issued by Government undertakings inviting bids for solar power projects; in normal parlance, the solar power plants are referred to as 'power projects' in the said tenders as well; it is also stated by the applicant that CBIC has issued a Notification No. 54/2022-Customs which provides for amendments in the table of Sponsoring Authority given under Project Import Regulations, 1986 as Sr. No. 2 of the table in column-2 shall read as "All Power Plants and Transmission Projects, other than solar power plants or solar power projects" in place of "All Power Plants and Transmission Projects"; and Sr. No. 3 of the table in column-2 shall read as "Power Plants and Transmission Projects, other titan solar power plants or solar power projects and other than those mentioned at Sr. No. 2 above" in place of Power Plants and Transmission Projects, other than those mentioned at Sr. No. 2 above"; the above cited amendment through notification no. 54/2022-Customs, which excludes the solar power project/plant from Sr. Nos. 2 and 3 of table for Sponsoring Authority, clearly confirms that the term 'Power Project' used in the Chapter heading 9801 of Customs Tariff Act, 1975 includes t....
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....he Central Electricity Authority (Technical Standards for Construction of Electric Plants and Electric Lines) Regulations, 2010 defines a 'Station' as the term which means either the Thermal Generating Station or Hydroelectric Generation Station depending upon the context; thus, it can be seen that a power plant is envisaged in terms of either thermal or hydroelectric and not solar in the Electricity Act, 2003 and The Central Electricity Authority (Technical Standards for Construction of Electric Plants and Electric Lines) Regulations, 2010; projects are registered strictly on the basis of regulations made under the PIR, 1986 read with Circular No. 22/2011 dated 4-5-2011; as per the list of projects mentioned in the Table annexed with the said regulations, the term Solar Power Projects is no where included, that means Solar Power Projects are excluded from the purview of PIR, 1986; accordingly there is no sponsoring authority entitled for endorsement of such solar projects as per annexed table to the PIR, 1986; it is pertinent to mention that the advance ruling in the application of M/s. Aquila Solar Power Pvt. Ltd. issued by the Customs Authority for Advance Rulings, Mumba....
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...., 2022 is absolutely clear on the fact that the benefit of the PIR, 1986 cannot be extended to Solar Power Projects. The Central Board of Indirect Taxes and Customs issued Project Import (Amendment) Regulations, 2022 vide the aforesaid Notification, whereby, "In the Project Import Regulations, 1986, against Sr. No. 2, in column2, and in Sr. No. 3, in column 2, for the words 'All Power Plants and Transmission Projects', the words 'All Power Plants and Transmission Projects, other than solar power plants or solar power projects' shall be substituted". Further, vide notification No. 2/2022- Customs, dated 1st February 2022, 'New power projects' registered after 30th September 2022 under project imports will attract 7.5% BCD rate. [S. No. 1(155 to 163) and IV (vii) of notification No. 2/2022-Customs, dated 1st February 2022 read with Clause 97(b) of the Finance Bill, 2022 refers]. However, there is no mention of whether any 'Power Project' would include 'Nuclear or Solar Power' as argued in the instant case. 7.2 As regards the argument of the applicant on Sponsoring Authority, it is noted that the intent of the Notification is to prevent the Sta....