Solar power projects face higher costs after customs duty notification

The government, through a notification issued under Section 65(1) of the Customs Act, 1962 (CA 62), has prospectively legitimised the administrative bar on import, without payment of customs duties under the scheme for manufacture in a bonded warehouse, of goods for solar power generation projects which supply electricity. 

 

Sections 57 to 73A of CA 62 deal with warehousing of imported goods. Section 58 deals with licensing private bonded warehouses where imported goods belonging to the licensee may be deposited without payment of any Customs duties. Section 68 of CA 62 mandates payment of the duties when the imported goods are