Supreme Court Quashes Customs Duty on Adani Power's SEZ Energy Transfer

The Supreme Court overturned a 2019 Gujarat High Court decision that denied Adani Power relief from customs duties on electrical energy moved from its SEZ plant to the domestic tariff area. The Court emphasized the binding nature of its 2015 verdict, declaring the levy unconstitutional.

The Supreme Court has nullified a 2019 Gujarat High Court ruling that had denied Adani Power Limited relief from customs duties on energy produced at its SEZ plant and transferred to the domestic tariff area.

A bench comprising Justices Aravind Kumar and N V Anjaria highlighted that the High Court had already ruled against the levy in 2015 for the period between June 26, 2009 and September 15, 2010, and emphasized this was not open to further challenge.

The top court stated that authorities must adhere to judicial pronouncements as binding, noting that repeated attempts to enforce an invalidated levy burdens the judiciary and creates uncertainty. Consequently, Adani Power is entitled to a refund for duties paid during the designated timeframe.

(With inputs from agencies.)