In re Blue Star Climatech Ltd.
Written by CA Minal Buch, Chartered Accountant, Lead Brain and Founder
Reviewed by Adv Parth Mehta, Advocate, Lead Brain
Last reviewed 31 October 2026
Facts
Blue Star Climatech, operating a MOOWR unit, sought advance rulings on several questions: duty drawback on exports from the unit, using Advance Authorisation for inputs brought into the unit, de-bonding MOOWR capital goods using an EPCG licence, and whether sales to merchant exporters delivered directly to the port count as exports.
Decision
The Authority held that it has no jurisdiction over drawback questions, because drawback is a refund mechanism and not a duty "leviable". Goods imported under Advance Authorisation into a MOOWR unit, once that benefit is claimed, are not treated as warehoused goods and may be used to make export products. Capital goods already enjoying MOOWR duty deferment cannot then be de-bonded using an EPCG licence. Sales to third-party exporters, delivered directly to the port with documentation meeting Foreign Trade Policy third-party export requirements, are exports and not domestic (DTA) clearances.
What it means in practice
MOOWR can sit alongside other export schemes, but not every combination is allowed. Plan scheme choices at import: once capital goods are under MOOWR deferment, EPCG cannot later be used to clear them. Merchant-export sales can be treated as exports if goods go straight to the port with the right paperwork.
This summary is general information, not tax, legal or professional advice.