{"id":3145,"date":"2025-03-19T17:23:53","date_gmt":"2025-03-19T11:53:53","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=3145"},"modified":"2025-03-19T17:23:53","modified_gmt":"2025-03-19T11:53:53","slug":"order-to-be-stayed-as-installation-of-solar-power-generation-equipment-allowed-for-home-consumption-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/order-to-be-stayed-as-installation-of-solar-power-generation-equipment-allowed-for-home-consumption-hc","title":{"rendered":"Order to Be Stayed as Installation of Solar Power Generation Equipment Allowed for Home Consumption | HC"},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/customs\/101010000000390119\/order-to-be-stayed-as-installation-of-solar-power-generation-equipment-allowed-for-home-consumption-hc\">Greenko APO1 Irep Pvt. Ltd. Versus Central Board of Indirect Taxes and Customs (2025) 28 Centax 117<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>G. Narendar<\/strong> &amp; <strong>T.C.D. Sekhar<\/strong>, JJ.<\/li>\n<li><strong>Shri V. Akshaya Babu<\/strong>, for the Petitioner.<\/li>\n<li><strong>Shri Santhi Chandra<\/strong>, Sr. Standing Counsel, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioner, an importer of solar power generation equipment, stored imported capital goods in a Customs Private Bonded Warehouse under Section 58 of the Customs Act, 1962. The Customs Department initiated proceedings, disputing the applicability of Section 65 of the Act and the restrictions under the Manufacturing and Other Operations in Warehouse (No. 2) Regulations, 2019. Aggrieved, the petitioner approached the High Court, contending that a Division Bench in ACME Heergarh Powertech Pvt. Ltd. v. Central Board of Indirect Taxes and Customs had already ruled against the Department on similar issues. The petitioner argued that since the Hon\u2019ble Supreme Court had not stayed that ruling, the present proceedings were unsustainable. It was further asserted that the imported goods were already installed, their valuation and duty liability were undisputed, and the right to generate and use power for home consumption was legally permissible.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Hon\u2019ble High Court observed that the petitioner had a prima facie case for interim relief, given that the earlier Division Bench ruling remained binding in the absence of a contrary order from the Hon\u2019ble Supreme Court. Accordingly, the Court stayed the impugned proceedings until further orders in the pending appeal before the Hon\u2019ble Supreme Court. Additionally, it directed the State Bank of India to deduct 15% of payments received under the Power Purchase Agreements and retain the amount in a fixed deposit as a precautionary measure. Subject to this condition, the petitioner was permitted to install the equipment, generate power, and supply it for home consumption, pending the final outcome of the case.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2025%20(391)%20E.L.T.%20198%20(Del.)&amp;itemType=AP\">ACME Heergarh Powertech Pvt. Ltd. v. Central Board of Indirect Taxes and Customs<\/a> \u2014 2025 (391) E.L.T. 198 (Del.) = (2024) 19 Centax 196 (Del.) \u2014 Relied on [Paras 6, 7, 8]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2024)%2024%20Centax%20376%20(S.C.)&amp;itemType=AP\">Central Board of Indirect Taxes and Customs v. ACME Heergarh Powertech Pvt. Ltd.<\/a> \u2014 (2024) 24 Centax 376 (S.C.) \u2014 Relied on [Para 11]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Greenko APO1 Irep Pvt. Ltd. Versus Central Board of Indirect&hellip;<\/p>\n","protected":false},"author":5,"featured_media":3180,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,177,47],"tags":[],"class_list":["post-3145","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customs","category-customs-news","category-custom-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Order to Be Stayed as Installation of Solar Power Generation Equipment Allowed for Home Consumption | HC<\/title>\n<meta name=\"description\" content=\"The High Court granted interim relief to an importer of solar equipment by staying customs proceedings under the Customs Act, pending a Supreme Court decision, allowing installation and power generation under specific financial conditions.\" \/>\n<meta name=\"robots\" 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