New Delhi, Sept 11 (KNN) The Supreme Court has allowed the Centre to levy 25 per cent safeguard duty on solar cell imports.

The duty on solar cells — the basic ingredient needed to manufacture solar panels — was imposed for a year, ending July 19, 2019, and the tax was to reduce to 20% for the six months till January 29, 2020, and 15% for the subsequent six months.

Odisha High Court had passed an interim order staying imposition of 'safeguard duty' on import of solar cells.

The Orissa HC, hearing a writ petition against the duty filed by local solar plant developers, had barred the government from imposing it till August 20, but the government went ahead and slapped the 25% impost on July 30.

On the request of domestic solar cell manufacturers, the director general (safeguards) on a preliminary finding had imposed a provisional safeguard duty of 70% ad valorem on import of solar cells.

It was challenged by Shapoorji Pallonji Infrastructure Capital Co Ltd before Madras HC, which dismissed the petition on April 16.

Another importer - ACME Solar Holdings Ltd - moved Delhi HC for similar relief and its petition was disposed of after recording that the petitioner would submit a representation to the Centre against the preliminary finding of the DG (safeguards).

In the meantime, the DG, after a detailed examination, gave final recommendation for imposition of safeguard duty at 25% for first year followed by 20% in the second year.