The Central Government has issued a notification exempting certain imports used for nuclear power generation from customs duty for a retrospective period extending from April 1, 2019, to January 31, 2026.
The notification has been issued under Section 28A of the Customs Act, 1962, which empowers the Central Government to regularize situations where a practice of non-levy or short levy of customs duty was generally prevalent. The Government has acknowledged that a widespread practice existed whereby customs duty was not being levied on specified goods imported for nuclear power generation during the relevant period.
Background of the Exemption
The exemption relates to goods classified under Tariff Item 8401 30 00, which were covered under Serial Number 227A of Notification No. 45/2025-Customs dated October 24, 2025, as subsequently amended by Notification No. 02/2026-Customs dated February 1, 2026. These notifications granted customs duty exemption on goods imported for the generation of nuclear power.
According to the Government, it was satisfied that customs authorities had generally not been collecting customs duty on such imports during the period beginning April 1, 2019 and ending January 31, 2026. Consequently, importers had acted on the understanding that these goods were entitled to duty-free treatment.
Retrospective Relief to Importers
The latest notification formally directs that customs duty payable under the First Schedule to the Customs Tariff Act, 1975, in respect of the specified nuclear power generation goods imported during the aforementioned period, shall not be required to be paid. This effectively grants retrospective protection to importers who may otherwise have faced demands for customs duty due to interpretational disputes or audit objections.
The notification clarifies that the exemption applies to the entire customs duty leviable on the specified imports and covers all qualifying imports made between April 1, 2019 and January 31, 2026.
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