ACME Heergarh Powertech Pvt. Ltd. v. Commissioner of Customs (Preventive)
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
After the earlier Delhi High Court ruling, Customs issued letters dated 30 January 2024 and 4 March 2024 starting recovery of customs duty from solar developers, on the basis that the MOOWR Regulations did not apply to solar generating units.
Decision
Following its coordinate bench decision in ACME Heergarh Powertech v. CBIC, the High Court held that capital goods imported for solar power generation were not excluded from Sections 61 and 65 and the MOOWR Regulations. The recovery letters could not be sustained and were quashed.
What it means in practice
Duty cannot be recovered from a MOOWR licensee simply on a departmental view that its activity falls outside the scheme. As with the earlier ruling, the later statutory exclusion of solar power from Section 65 limits its relevance for new projects.
This summary is general information, not tax, legal or professional advice.