ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 18.09.2025
CESTAT Delhi Emphasized that 100% Export-Oriented Units (EOUs) are exempt from safeguard dutyโ โ
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a landmark decision, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has ruled in favor of M/s Alpex Solar Pvt. Ltd., a 100% Export-Oriented Unit (EOU), exempting them from the imposition of safeguard duty under Section 8B(2A) of the Customs Tariff Act, 1975. โ This judgment, delivered on September 16, 2025, sets a significant precedent for EOUs across India.
Background of the Case
Alpex Solar Pvt. โ Ltd., engaged in the manufacturing and export of solar panels, imported Multi Silicon Solar Cells from Taiwan in 2018. โ The company filed Bills of Entry at a nil rate of Basic Customs Duty (BCD) and paid IGST at 5%, availing exemptions under Notification No. 24/2005-Cus. However, in March 2019, the Special Investigation and Intelligence Branch observed that the company had not paid safeguard duty at 25%, imposed under Notification No. โ 1/2018-(SG). โ A show-cause notice was issued, alleging that the goods imported were of Taiwanese origin, which did not qualify for exemption under Notification No. โ 19/2016-Cus (NT). โ
The Principal Commissioner of Customs confirmed the demand for safeguard duty, IGST interest, and penalties, leading Alpex Solar Pvt. โ Ltd. to challenge the order before CESTAT.
Source: CESTAT Delhi
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