Duty exemption certificate for items damaged during setting up of Solar power or facility

The Ministry of New & Renewable Energy in terms with the Ministry of Finance (Deptt. of Revenue)’s Notifications examined the matter which allows to issue excise duty exemption/concessional customs duty certificates for machinery, including prime  movers, instruments, apparatus and appliances etc. which are required for initial setting  up of Solar Power Generation Project or Facility. Considering that the projects, under  question, are still in the process of erection and commissioning and some items gets  damage due to fire or otherwise, it has been decided to allow the SPDs to seek Concessional Customs Duty or Excise Duty Exemption Certificates, as the case may  be, for the damaged items under the following conditions:- 
(i)The replacement of the damaged items are required for initial setting up of the Solar Power Generation Project or Facility (i.e before declaration of commercial operation date) and the items have damaged due to fire, road accidents or due to a natural calamity. 
(ii) The damaged items are beyond economical repair and are required for completeness of the project. 
The SPD shall have to apply separately to this Ministry for issuing duty exemption certificates with the following documents: 

(a)An Undertaking by the CEO of the project of having met the conditions mentioned  (i) & (ii) above;

(b)First Information Report(FIR) issued by the Local Police or First information Report (FIR) filed with the Insurance Company/Declaration from the local civil authorities;

(c)A Report by the concerned State Nodal Agency (SNA) clearly bringing out the reasons for the damage and also specifying ‘Quantity & Specifications’ of the damaged items. The Report may also, wherever possible, enclose a photograph of the damaged site along with the damaged items. 

Policies & Regulations | News published on 20/11/2013 by Rashmi Nargundkar

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