ACME Heergarh Powertech Pvt. Ltd. v. CBIC
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
Solar power developers were granted MOOWR licences in October 2021 and imported capital goods such as PV modules and inverters to set up generating plants. CBIC Instruction No. 13/2022-Customs of 9 July 2022 declared such permissions contrary to law and directed their review. Show cause notices followed to cancel the licences, without alleging any breach of the Act or licence conditions.
Decision
The Delhi High Court held that the instruction went beyond CBIC's advisory role because it effectively dictated cancellation to licensing authorities. Sections 61 and 65 and the MOOWR Regulations do not exclude any particular manufacturing activity, so importing capital goods to generate solar power was not excluded. Concerns about a level playing field for domestic producers could not justify reading the regulations narrowly.
What it means in practice
Licensing authorities must decide on suspension or cancellation themselves, and cannot simply follow a departmental instruction. Note that the law has since changed: a proviso to Section 65(1) now excludes solar power generation from MOOWR, so this ruling matters mainly for licences and imports before that change.
This summary is general information, not tax, legal or professional advice.