ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 11.07.2025
Madras High Court Allows STPI Duty Exemption
In a landmark decision that provides much-needed clarity and relief to the IT and infrastructure sector, the Madras High Court has ruled in favour of Khivraj Tech Park Pvt. Ltd., granting it customs duty exemption for capital goods imported under the Software Technology Park of India (STPI) scheme despite a delayed approval from the Chennai Metropolitan Development Authority (CMDA).
Case Background
Khivraj Tech Park Pvt. Ltd., a recognized STPI unit, imported capital goods and claimed customs duty exemption under Notification No. 153/1993-Customs, which is available to STPI units for setting up or expanding infrastructure. However, the customs authorities rejected the exemption, citing that CMDA’s building plan approval was obtained only after the goods had been imported.
The authorities alleged that the condition of prior CMDA approval was a prerequisite for claiming exemption under the STPI scheme, and hence, the benefits were not admissible.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: Madras High Court
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