SC allows Adani Power's appeal, sets aside HC order on customs duty, Pg2

Key Highlights:

• The Supreme Court overturned a 2019 Gujarat High Court ruling regarding customs duty on electrical energy generated by Adani Power in its SEZ plant.
• The ruling concerns electricity supplied from the Special Economic Zone (SEZ) to the Domestic Tariff Area (DTA).
• The Supreme Court directed authorities to refund amounts deposited by Adani Power between September 16, 2010, and February 15, 2016.
• The court emphasized that judicial pronouncements are binding and that enforcing a levy already struck down undermines the rule of law.

Detailed Insights:

• The Gujarat High Court had previously struck down the levy of customs duty on electrical energy cleared by Adani Power from its SEZ unit into the DTA for the period June 26, 2009 to September 15, 2010, a decision the Supreme Court declined to interfere with in November 2015.
• The Supreme Court stated that the authorities should have extended the benefit of the 2015 decision uniformly to all subsequent periods until the law was altered by legislative action, reinforcing the principle of finality of adjudication.
• The court clarified that its judgment is limited to the specified period and existing statutory framework, and it does not express any opinion on future legislative regimes.
• The appellant, Adani Power Ltd, operates a 5,200 MW coal-based thermal power plant within the Mundra Special Economic Zone (SEZ) in Gujarat.

Key Concepts Involved:

• SEZ (Special Economic Zone): A geographical region with economic laws that are more liberal than a country's typical economic laws.
• DTA (Domestic Tariff Area): The portion of a country that is subject to general tariff and trade regulations, distinct from special economic zones.
• Customs Duty: A tax imposed on goods when they are transported across international borders.