Inox Wind is under the scanner of the Directorate of Revenue Intelligence (DRI) for making false claims and availing itself of benefits through Concessional Customs Duty Exemption Certificates (CCDC).
A senior official in the know said, “The DRI is investigating the alleged misuse of benefits by Inox Wind on import of converter cabinets.”
While most of the wind energy generation equipment in the country is domestically manufactured, some are imported. The wind turbine power converter cabinet is one such equipment.
DRI officials told BusinessLine that the investigation is in the early stages, but searches have been conducted at the office premises of Inox Wind in Noida.
The subject of investigation is the CCDC issued by the Ministry of New and Renewable Energy (MNRE) officials to Inox Wind. The DRI has sought details of the certificates issued in the last five years.
MNRE issues CCDC certificates to recognised manufacturers, according to the Ministry of Finance notification number 50/217-Customs dated July 30, 2017. This is done to promote local manufacturing of wind energy turbine and its components. Importers get Customs duty exemption if the imported components are used for domestic manufacturing or maintenance of wind-operated electricity generators.
The DRI is said to be investigating the alleged duty evasion and loss to the exchequer. It is estimated that CCDCs worth around ₹150 crore are issued by MNRE every day. It is unclear what quantum was availed by Inox Wind and how much of it was falsified.
An importer company can avail itself of Customs duty exemption if it furnishes, in all cases, a certificate to the Deputy Commissioner of Customs or the Assistant Commissioner of Customs. This certificate is to be issued by an officer not below the rank of a Deputy Secretary to the Government of India in the MNRE recommending the grant of duty exemption.
“For ensuring quality and safety of the wind turbines and components only Type Certified wind energy turbines, which are empanelled in the Revised List of Models and Manufacturers of Wind Turbines (RLMM) of the Ministry, are considered for issuance of CCDC. Besides, the imported parts/components must adhere to the design/suppliers as per valid type certificate,” a MNRE microsite for CCDC issuance said.
The role of officials who issued the certificates may also come under the DRI investigation.