Relief to Solar Industry: Delhi HC quashes CBIC Instructions denying Applicability of MOOWR to Solar Power Generation Units u/s 65 of Customs Act [Read Order]

The Delhi High Court has upheld that the Manufacture and Other Operations in Warehouse Regulations, 2019 (MOOWR) do not exclude solar power generation under Section 65 of the Customs Act, 1962. Justices Yashwant Varma and Ravinder Dudeja's division bench emphasized the crucial role of solar energy in India's renewable transition. \r

The court's decision addressed challenges against Central Board of Indirect Taxes and Customs (CBIC) instructions from July 2022, contending they unlawfully restricted customs officials' discretion in licensing solar power units under MOOWR. \r

It clarified that Section 65 permits all categories of goods, including solar components, to undergo manufacturing processes in licensed warehouses, emphasizing statutory compliance and due process in customs operations.