In re Swelect HHV Solar Photovoltaics Private Limited (CAAR Mumbai)
M/s Swelect HHV Solar Photovoltaics Private Limited filed an application before the Customs Authority for Advance Rulings (CAAR), Mumbai, seeking clarity on the applicability of Notification No. 16/2024-Customs (ADD), which imposed anti-dumping duty (ADD) on imports of aluminium frames for solar panels/modules under Tariff Heading 7610 90 10 with effect from 27 September 2024. The applicant had imported these aluminium frames between December 2023 and September 2024 under a Manufacture and Other Operations in Warehouse (MOOWR) license, availing duty deferment on Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), and Integrated GST (IGST). The query concerned whether the ADD imposed after importation would apply to goods cleared for home consumption after the notification came into effect.
The applicant argued that under MOOWR regulations, duties are deferred until the goods are cleared from the warehouse for domestic consumption or exported. Relying on CBIC FAQs and Circular 50/2018-Customs, they contended that only the duties applicable at the time of import—i.e., BCD, SWS, and IGST—become payable at ex-bond clearance, and subsequent imposition of ADD should not apply. The applicant also referred to judicial precedents, including the Madras High Court decision in Flextronics Technologies (India) Pvt. Ltd., asserting that in SEZ contexts, anti-dumping duty applies only at the time of first import and not upon domestic clearance.
