‘International Renewable Energy Certificates’ are intangible goods but not goods under the Customs law – Hon’ble CAAR

‘International Renewable Energy Certificates’ are intangible goods but not goods under the Customs law – Hon’ble CAAR

On an application before the CAAR (Customs Authority for Advance Rulings) Mumbai on the question if IRECs are taxable under the Customs Act, 1962 when imported in electronic form?

Hon’ble CAAR ruled that IRECs are intangible goods when downloaded electronically, and are not classifiable or taxable under the Customs Act, 1962, as it lacks the mechanism to levy and collect duty on such imports.

The CAAR also ruled that IRECs are documents of title when imported in physical form, and are classifiable under heading 49.07 of the Customs Tariff Act, 1975.

The CAAR also considered the nature and utility of IRECs, which certify the generation and consumption of renewable energy, and the regulatory mechanism for IRECs.