Exemption to goods for Initial Setting up of Solar Power Generation Project - Liability on Project
NOTIFICATION No. 15/2010 – CE dated 27.02.2010 exempts certain goods required for initial setting up of a Solar Power Generation Project, subject to the conditions that the manufacturer furnishes an undertaking to the effect that, –
1. the said goods will be used only in the said project and not for any other use; and
2. in the event of failure to observe the conditions, the manufacturer shall pay the duty which would have been leviable at the time of clearance of goods, but for this exemption.
With such Damocles conditions, no sane manufacturer would supply goods to these projects, as they could be saddled with duty liability and penalty four years after clearance.
Maybe to solve this problem, Government has now amended this notification to stipulate that the undertaking and duty liability are on the Project Developer. Of course, this will not bar the Department from issuing notice to the manufacturer, if they cannot get at the Project Developer.
Notification No. Dated: May 08 2012