The Delhi High Court, Coram of Justice Rajiv Shakdher, and Justice Tara Vitasta Ganju granted interim relief to the assessee that no precipitate action be taken against the petitioner at the stage of import.
The assessee filed a writ petition against the notification dated 19.10.2022 [i.e.,Sl.No. 2(ii)] and the communication dated 21.11.2022 issued by the second respondent.
Sujit Ghosh, who showed up on behalf of the petitioner, posited that perusing the communication dated 21.11.2022, which allegedly retrospectively amended the Project Import Regulations, 1986, would exemplify that the petitioner had indeed been denied the benefit of the concessional rate of customs duty available for importing equipment for the purpose of its solar power project.
The counsel for the petitioner further contented that upon receipt of the communication, a right was vested in favor of the petitioner to import registered items for the execution of the solar power project to import items at a concessional rate of duty, which, according to the respondents, stands withdrawn with the issuance of the impugned notification dated 19.10.2022.
Sujit Ghosh emphasized that the registration of the solar power project, which occurred prior to the said date, will continue to have the benefit of the concessional rate of customs duty.
Satish Kumar, who appeared on behalf of respondents No.1 and 2, submitted that the petitioner has not fulfilled the stipulated eligibility criteria for being accorded the concessional rate of duty.
Further submitted that, at this stage, no interim order can be passed in favor of the petitioner, even if the matter, otherwise, would require consideration.
The bench observed that the petitioner has set up a prima facie case. In case no interim protection is granted, the entire process of import is likely to get derailed. It was highlighted that the petitioner has submitted a continuity bond for a large sum of money, along with a bank guarantee.
In addition, it was mandated that the petitioner pay duty at the tariff rate rather than the concessional rate if it loses the current writ petition for the sake of convenience.
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