2026-VIL-1644-CESTAT-CHE-CU
  1. Home
  2. 2026-VIL-1644-CESTAT-CHE-CU

CUSTOMS CESTAT Cases

Customs - Exemption Notification No. 21/2002-Cus dated 01.03.2002 and Notification No. 12/2012-Cus dated 17.03.2012 - Concessional duty on import of parts of Wind Operated Electricity Generators subject to condition that importer shall use goods for specified purpose - Respondent imported parts of Wind Operated Electricity Generators availing concessional duty benefit under the said notifications, and simultaneously executed separate supply agreements and erection and commissioning agreements with project developers, transferring the imported goods to customers prior to erection and commissioning at project site - Department alleged that such transfer of ownership before installation violated Condition Nos. 35 and 45 of the exemption notifications - Adjudicating authority dropped the proceedings holding that the imported goods were used for manufacture and installation of the generators and that the notifications did not prohibit transfer of goods prior to erection or assembly - Whether transfer of imported goods to customers under supply agreements prior to erection and commissioning results in violation of the condition that the importer shall use the goods for the specified purpose - HELD - The expression "he shall use them for specified purpose" cannot be interpreted to require continuous ownership of the imported goods till final commissioning - The notifications are incentive notifications intended to promote renewable energy generation, and the substantive requirement is that the goods must ultimately be used for the specified purpose of manufacture or maintenance of Wind Operated Electricity Generators, with nothing therein prohibiting movement of goods to the project site or transfer under a turnkey contractual arrangement - The imported goods were admittedly used exclusively for erection and commissioning of the generators, with the importer retaining technical responsibility for fabrication, erection and commissioning, and there was no allegation of diversion or alternative end use - The identical issue stands settled by the jurisdictional High Court, which held that mere sale or transfer of possession of imported goods prior to assembly does not amount to violation of the condition requiring use for specified purpose where the importer retains contractual responsibility for erection and commissioning - Transfer of goods under supply contracts prior to final assembly does not amount to breach of notification conditions so long as the goods are ultimately used by the importer in execution of the specified project - Impugned order dropping the proceedings suffers from no legal infirmity – The appeal filed by Revenue is dismissed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?