India Supreme Court orders refund of customs duty on SEZ electricity supply
Authorities must refund customs duty collected on SEZ power supplies
Change
India’s Supreme Court ruled no customs duty applies on electricity supplied from SEZ units to the domestic market and ordered refunds.
Why it matters
The ruling sets aside prior orders and confirms exemption from customs duty on SEZ electricity supply for specified periods. It directs authorities to refund collected amounts within a defined timeline.
Implications
- — Customs authorities must process refunds within mandated timelines — delays risk non-compliance with court order
- — Power producers must reassess tax liabilities on SEZ supply — misclassification risks financial exposure
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