M/S Solgen Energy Pvt. Ltd vs Commissioner Of Customs
2025 Latest Caselaw 6320 Ker

Kerala High Court

M/S Solgen Energy Pvt. Ltd vs Commissioner Of Customs on 27 May, 2025

Author: A.K.Jayasankaran Nambiar

Bench: A.K.Jayasankaran Nambiar

CUS.APPEAL NO. 2 OF 2024        :1:                          2025:KER:36864
CUS.APPEAL NO. 3 OF 2024 &
CUS.APPEAL NO. 4 OF 2024

                IN THE HIGH COURT OF KERALA AT ERNAKULAM

                                  PRESENT

         THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR

                                      &

                  THE HONOURABLE MR. JUSTICE P.M.MANOJ

        TUESDAY, THE 27TH DAY OF MAY 2025 / 6TH JYAISHTA, 1947

                         CUS.APPEAL NO. 2 OF 2024

    (AGAINST THE FINAL ORDER NO.FO/C/A/20102/2024-CU(DB) DATED
16.02.2024 IN APPEAL NO.20618/2017 DATED 09.02.2017 ON THE FILE OF
  THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, SOUTYH
ZONAL BENCH AT BANGALORE RECEIVED BY THE APPELLANT ON 05.03.2024)
APPELLANT/RESPONDENT/ASSESSEE:

             M/S SOLGEN ENERGY PVT. LTD
             22/314-BKUTTANELLUR P.O THRISSUR REPRESENTED BY ITS
             DIRECTOR, SHRI. CHRISTO GEORGE, PIN - 680014

             BY ADVS.
             SRI.M.BALAGOPAL
             SMT.R.DEVIKA
             SMT.ANJALI MENON
RESPONDENT/APPELLANT/REVENUE:

             COMMISSIONER OF CUSTOMS
             CUSTOM HOUSE, WILLINGDON ISLAND, COCHIN, PIN - 682009


             BY ADV SRI.SUVIN R MENON


      THIS   CUSTOMS   APPEAL   HAVING    COME   UP   FOR   FINAL   HEARING   ON
27.05.2025, ALONG WITH Cus.Appeal.3/2024, 4/2024, THE COURT ON THE
SAME DAY DELIVERED THE FOLLOWING:
 CUS.APPEAL NO. 2 OF 2024        :2:                          2025:KER:36864
CUS.APPEAL NO. 3 OF 2024 &
CUS.APPEAL NO. 4 OF 2024


                IN THE HIGH COURT OF KERALA AT ERNAKULAM

                                  PRESENT

         THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR

                                      &

                  THE HONOURABLE MR. JUSTICE P.M.MANOJ

        TUESDAY, THE 27TH DAY OF MAY 2025 / 6TH JYAISHTA, 1947

                         CUS.APPEAL NO. 3 OF 2024

     (AGAINST THE FINAL ORDER NO.FO/C/A/20541/2024-CU(DB) DATED
   11.07.2024 IN APPEAL NO.21152/2016 ON THE FILE OF THE CUSTOMS,
  EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, SOUTH ZONAL BENCH AT
         BANGALORE RECEIVED BY THE APPELLANT ON 23.07.2024)
APPELLANT/RESPONDENT/ASSESSEE:

             M/S SOLGEN ENERGY PVT. LTD
             22/314-BKUTTANELLUR P.O THRISSUR- REPRESENTED BY ITS
             DIRECTOR, SHRI. CHRISTO GEORGE, PIN - 680014

             BY ADVS.
             SRI.M.BALAGOPAL
             SMT.R.DEVIKA
             SMT.ANJALI MENON



RESPONDENT/APPELLANT/REVENUE:

             COMMISSIONER OF CUSTOMS
             CUSTOM HOUSE, WILLINGDON ISLAND, COCHIN-, PIN - 682009

             BY ADV SRI.SUVIN R MENON, SC


      THIS   CUSTOMS   APPEAL   HAVING    COME   UP   FOR   FINAL   HEARING   ON
27.05.2025, ALONG WITH Cus.Appeal.2/2024 AND CONNECTED CASES, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 CUS.APPEAL NO. 2 OF 2024        :3:                          2025:KER:36864
CUS.APPEAL NO. 3 OF 2024 &
CUS.APPEAL NO. 4 OF 2024


                IN THE HIGH COURT OF KERALA AT ERNAKULAM

                                  PRESENT

         THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR

                                      &

                  THE HONOURABLE MR. JUSTICE P.M.MANOJ

        TUESDAY, THE 27TH DAY OF MAY 2025 / 6TH JYAISHTA, 1947

                         CUS.APPEAL NO. 4 OF 2024

    (AGAINST THE FINAL ORDER NO.FO/C/A/20540/2024-CU(DB) DATED
  11.07.2024 IN APPEAL NO.21499/2016 ON THE FILE OF THE CUSTOMS,
 EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, SOUTYH ZONAL BENCH AT
        BANGALORE RECEIVED BY THE APPELLANT ON 23.07.2024)
APPELLANT/RESPONDENT/ASSESSEE:

             M/S SOLGEN ENERGY PVT. LTD
             22/314-BKUTTANELLUR P.O THRISSUR- REPRESENTED BY ITS
             DIRECTOR, SHRI. CHRISTO GEORGE, PIN - 680014

             BY ADVS.
             SRI.M.BALAGOPAL
             SMT.R.DEVIKA
             SMT.ANJALI MENON



RESPONDENT/APPELLANT/REVENUE:

             COMMISSIONER OF CUSTOMS
             CUSTOM HOUSE, WILLINGDON ISLAND, COCHIN-, PIN - 682009


             BY ADV SRI.SUVIN R MENON, SC


      THIS   CUSTOMS   APPEAL   HAVING    COME   UP   FOR   FINAL   HEARING   ON
27.05.2025, ALONG WITH Cus.Appeal.2/2024 AND CONNECTED CASES, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 CUS.APPEAL NO. 2 OF 2024            :4:                           2025:KER:36864
CUS.APPEAL NO. 3 OF 2024 &
CUS.APPEAL NO. 4 OF 2024




                                    JUDGMENT

Dr. A.K.Jayasankaran Nambiar, J.

In these appeals preferred by the assessee what is impugned are the final

orders dated 16.02.2024 and 11.07.2024 of the Customs, Excise and Service Tax

Appellate Tribunal, Bangalore in appeals preferred by the Customs Department

against orders of the First Appellate Authority that had allowed the appeal

preferred by the appellant against orders of the original authority under the

Customs Act denying the appellant the benefit of exemption under Notification

No.12/2012 CE dated 17.03.2012 in respect of inverter units imported by it.

2. The brief facts necessary for the disposal of these appeals are as follows:

The appellant herein had imported "Grid Tied Solar Inverters" by

claiming the exemption of additional duty of customs under Notification

No.12/2012 CE dated 17.03.2012. The claim for exemption of duty was

rejected by the original authority, who was of the view that the goods imported

by the appellant herein could not merit categorisation as a Solar Power

Generating System. In the appeals preferred by the appellant before the First

Appellate Authority, however, the latter found that no evidence had been

adduced by the revenue to demonstrate multiple uses of the solar inverter and

inasmuch as the exemption notification had to be construed liberally in favour

of the assessee, the goods imported by the appellant would be entitled to the

benefit of the exemption notification.

3. In a further appeal carried by the Customs Department before the CUS.APPEAL NO. 2 OF 2024 :5: 2025:KER:36864 CUS.APPEAL NO. 3 OF 2024 & CUS.APPEAL NO. 4 OF 2024

Appellate Tribunal, the Appellate Tribunal by the orders impugned in these

appeals found that, in as much as the appellant had imported only the inverter

component of the Solar Power Generating System and had not imported the

photo-voltaic cell necessary for the capture of solar energy along with the

inverter, they had not imported a solar power generating system for the

purposes of the notification. The Appellate Tribunal, therefore, found that the

appellant herein had not satisfied the condition for exemption under the

notification aforementioned and allowed the appeal preferred by the Customs

Department.

4. Before us, it is the submission of Sri.M.Balagopal, the learned

counsel for the appellant that the reasoning of the Appellate Tribunal is flawed

since the Appellate Tribunal considered the imported item as only a part of the

system and not of the entire system that was entitled to the benefit of the

exemption notification. We have also heard Sri. Suvin R.Menon, the learned

Standing counsel for the respondent.

On a consideration of the rival submissions, we find that it is the

admitted case of the appellant herein that what they had imported was only

the inverter component of the Solar Power Generating System since they had

not imported, as a composite unit, both the photo-voltaic cell as well as the

inverter. Had they imported both the above components together as an

integral unit, then perhaps they could have obtained the benefit of the

notification that granted an exemption in respect of Solar Power Generating

Systems. Inasmuch as the import in the instant case was only of the inverter

component, without the photo-voltaic cell - a component that was essential CUS.APPEAL NO. 2 OF 2024 :6: 2025:KER:36864 CUS.APPEAL NO. 3 OF 2024 & CUS.APPEAL NO. 4 OF 2024

for harnessing solar energy, which could then be routed through the inverter

system for the supply of electrical energy to the grid, the appellant cannot be

seen as eligible for the benefit of the exemption notification, as rightly found

by the Appellate Tribunal. We, therefore, see no reason to interfere with the

well reasoned order of the Appellate Tribunal impugned in these appeals. The

appeals, therefore fail and are accordingly dismissed.

Sd/-

DR. A.K.JAYASANKARAN NAMBIAR JUDGE

Sd/-

P.M.MANOJ JUDGE

mns CUS.APPEAL NO. 2 OF 2024 :7: 2025:KER:36864 CUS.APPEAL NO. 3 OF 2024 & CUS.APPEAL NO. 4 OF 2024

APPENDIX OF CUS.APPEAL 3/2024

PETITIONER ANNEXURES

Annexure A THEFINAL ORDER NO. FO/C/A/20541/2024-CU(DB) DATED 11.07.2024 PASSED BY THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, SOUTH ZONAL BENCH AT BANGALORE.

Annexure B A TRUE PHOTOCOPY OF THE RELEVANT PAGES OF THE EXEMPTION NOTIFICATION NO. 12/2012- C.E DATED 17.03.2012.

Annexure C TRUE PHOTOCOPY OF THEORDER NO. 4/2016 DATED 03.05.2016.

Annexure D A TRUE PHOTOCOPY OF THE ORDER IN APPEAL NO.

ORDER IN APPEAL NO. COC-CUSTM-000-APP- 59/2016-17 DATED 08.07.2016 PASSED BY THE COMMISSIONER (APPEALS), COCHIN.

Annexure E TRUE COPY OF THE FINAL ORDER NO.

FO/C/A/20102/2024-CU.(DB) DATED 16.02.2024 PASSED BY THE CESTAT, BANGALORE IN CUSTOMS APPEAL NO. 20618 OF 2017.

Annexure F :TRUE COPY OF THE FINAL ORDER NO. 50361/2022 DATED 22.04.2022 PASSED BY CESTAT, NEW DELHI IN EXCISE APPEAL NO. 52480 OF 2019

Annexure G TRUE COPY OF THEFINAL ORDER PASSED BY CESTAT, BANGALORE IN THE CASE OF BHEL VS.

COMMISSIONER OF CENTRAL EXCISE, HYDERABAD, REPORTED IN 2008 (223) E.L.T 609 (TRI.BANG.) CUS.APPEAL NO. 2 OF 2024 :8: 2025:KER:36864 CUS.APPEAL NO. 3 OF 2024 & CUS.APPEAL NO. 4 OF 2024

APPENDIX OF CUS.APPEAL 4/2024

PETITIONER ANNEXURES

Annexure A CERTIFIED COPY OF THE FINAL ORDER NO.

FO/C/A/20540-/2024-CU(DB) DATED 11.07.2024 PASSED BY THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, SOUTH ZONAL BENCH AT BANGALORE.

Annexure B TRUE PHOTOCOPY OF THE RELEVANT PAGES OF THE EXEMPTION NOTIFICATION NO. 12/2012- C.E DATED 17.03.2012

Annexure C TRUE PHOTOCOPY OF THEORDER NO. 216/2015 DATED 14.12.2015.

Annexure D TRUE PHOTOCOPY OF THE ORDER IN APPEAL NO.

21/2016-17 DATED 29.04.2016 PASSED BY THE COMMISSIONER (APPEALS).

Annexure E TRUE COPY OF THE FINAL ORDER NO. FINAL ORDER NO. FO/C/A/20102/2024-CU.(DB) DATED 16.02.2024 PASSED BY THE CESTAT, BANGALORE IN CUSTOMS APPEAL NO. 20618 OF 2017.

Annexure F TRUE COPY OF THE FINAL ORDER NO. 50361/2022 DATED 22.04.2022 PASSED BY CESTAT, NEW DELHI IN EXCISE APPEAL NO. 52480 OF 2019.

Annexure G TRUE COPY OF THE FINAL ORDER PASSED BY CESTAT, BANGALORE IN THE CASE OF BHEL VS. COMMISSIONER OF CENTRAL EXCISE, HYDERABAD, REPORTED IN 2008 (223) E.L.T 609 (TRI.BANG.) CUS.APPEAL NO. 2 OF 2024 :9: 2025:KER:36864 CUS.APPEAL NO. 3 OF 2024 & CUS.APPEAL NO. 4 OF 2024

APPENDIX OF CUS.APPEAL 2/2024

PETITIONER ANNEXURES

Annexure A CERTIFIED COPY OF THE FINAL ORDER NO.

FO/C/A/20102/2024-CU(DB) DATED 16.02.2024PASSED BY THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, SOUTH ZONAL BENCH AT BANGALORE

Annexure B TRUE PHOTOCOPY OF THE RELEVANT PAGES OF THE EXEMPTION NOTIFICATION NO. 12/2012- C.E DATED 17.03.2012

Annexure C TRUE PHOTOCOPY OF THEORDER NO. 106/2016 DATED 06.09.2016.

Annexure D TRUE PHOTOCOPY OF THE ORDER IN APPEAL NO.

202-2016-17 DATED 20.01.2017PASSED BY THE COMMISSIONER (APPEALS), COCHIN

Annexure E TRUE COPY OF THE FINAL ORDER NO. 22953/2017 DATED 04.12.2017 IN CUSTOMS APPEAL NO. C/20618/2017-DB

Annexure F TRUE COPY OF THE JUDGMENT DATED 10/01/2023 IN CUSTOMS APPEAL NO. NO.20 OF 2018 PASSED BY THE HON'BLE HIGH COURT OF KERALA

Annexure G TRUE COPY OF THE FINAL ORDER NO. 50361/2022 DATED 22.04.2022 PASSED BY CESTAT, NEW DELHI IN EXCISE APPEAL NO. 52480 OF 2019

Annexure H TRUE COPY OF THE FINAL ORDER PASSED BY CESTAT, BANGALORE IN THE CASE OF BHEL VS. COMMISSIONER OF CENTRAL EXCISE, HYDERABAD, REPORTED IN 2008 (223) E.L.T 609 (TRI.BANG.)