Solar Power Generation Under MOOWR Is Valid – CBIC Instruction Dated 9 July 2022 Quashed

The Delhi High Court has held that the statutory scheme underlying the MOOWR Regulations cannot be construed as seeking to exclude solar power generation in terms of permissions granted under Section 65 of the Customs Act, 1962. According to the Court, neither Section 61 nor Section 65 can be justifiably construed as incorporating an inherent or implied exclusion of solar power generation.

The High Court in its decision dated 6 May 2024 further quashed the CBIC Instruction dated 9 July 2022, insofar as it mandated review of existing licenses and taking of follow-up action.

Rejecting the submission of the Department (exclusion of solar power generation from MOOWR) based on purposive interpretation, the Court observed that it would be incorrect to recreate or reassemble Section 65 so as to exclude a particular category of activity based upon the experience of its working or its perceived negative impact on the domestic industry. The Court was also of the view