Inapplicability Of MOOWR Scheme On Solar Power Generating Units: Delhi High Court Stays SCN Seeking To Revoke MOOWR License
The Delhi High Court bench of Justice Rajiv Shakdher and Justice Vitasta Ganju has stayed the show cause notice issued by the commissioner to revoke the licence under the Manufacturing and Other Operations in Warehouse (no. 2) Regulations, 2019 (MOOWR). The MOOWR Scheme grants a benefit of duty deferment without any interest on capital goods and inputs imported by a person holding...
The Delhi High Court bench of Justice Rajiv Shakdher and Justice Vitasta Ganju has stayed the show cause notice issued by the commissioner to revoke the licence under the Manufacturing and Other Operations in Warehouse (no. 2) Regulations, 2019 (MOOWR).
The MOOWR Scheme grants a benefit of duty deferment without any interest on capital goods and inputs imported by a person holding a licence under Section 65 of the Customs Act, 1962 for undertaking manufacturing or other operations in a bonded warehouse. The duty deferment is without any time limit.
The instruction denied the benefit on the basis that the resultant good, i.e., electricity, cannot be stored in a warehouse and cannot be affixed with a one-time lock to the load compartment. The instruction further directed the officer of customs to review the licences granted under the scheme and take necessary action. The instruction directed the officer of customs to not grant any further permission.
The petitioner submitted that the matter was heard on July 13, 2202. in the morning session. The court, while issuing notice, had passed an interim order whereby the respondents were restrained from taking coercive measures against the petitioner.
The petitioner submitted that in the afternoon of July 13,2022, at about 03.22 P.M., the show cause notice was received. The Show Cause Notice shows that respondents were hurtling towards the cancellation of MOOWR licences.
The petitioner contended that the show cause notice seemed to suggest that the respondents have already reached a decision even while the issue is being examined by the Court.
"A perusal of the SCN shows that respondents/revenue are hurtling towards cancellation of subject licences, which, in our view, if done at this stage, would impair the petitioner's interest, even while the issue is being examined by the Court," the court said.
The court listed the matter for 26.08.2022.
Case Title: ACME Heergarh Powertech Private Limited vs. Central Board of Indirect Taxes and Customs and Anr.
Citation: CM No.31692/2022
Dated: 20.07.2022
Counsel For Petitioner: Advocates Sujit Ghosh, Mannat Waraich, Shubh Dixit
Counsel For Respondent: Advocate Satish Kumar