Adani wins relief as SC says no customs duty on SEZ power

In a significant relief for Adani Power Ltd, the Supreme Court on Monday ruled that customs duty cannot be levied on electricity supplied from a Special Economic Zone (SEZ) to the domestic market, setting aside a 2019 Gujarat High Court judgment and freeing the firm from the levy on power generated at its Mundra plant.

- Krishna Yadav

The SC bench said the levy lacked the authority of law. PTI

(PTI)

A bench of justices Aravind Kumar and N.V. Anjaria held that the levy lacked the authority of law and that the government cannot retain amounts collected under an invalid tax. The court directed customs authorities to refund the duty collected from Adani Power, asking the jurisdictional Commissioner of Customs to complete verification and issue refunds within eight weeks from the date of the judgment.

The ruling resolves a long-running tax dispute dating back to 2010. In 2019, Gujarat High Court had cited customs duty collections of around ₹458 crore, excluding interest.