Supreme Court sets aside customs duty demand on Adani Power electricity from Mundra SEZ

The bench directed the power ministry and customs authorities to refund the amount Adani Power deposited for electricity supplied between September 16, 2010 and February 15, 2016 within eight weeks, with no interest.
Supreme Court sets aside customs duty demand on Adani Power electricity from Mundra SEZ
A What happened
The Supreme Court held that Adani Power was not liable to pay customs duty on electricity supplied from its thermal power plant in Mundra Special Economic Zone to the domestic market. The court set aside a 2019 Gujarat High Court order upholding the levy. The bench directed the power ministry and customs authorities to refund the amount the company had deposited against the demand for electricity supplied between September 16, 2010 and February 15, 2016. The refund must be made within eight weeks and will not carry any interest.

Key insights

  • 1

    Refund timeline set by court: The Supreme Court said the refund must be made within eight weeks and will not carry any interest.

  • 2

    Bench composition named: The bench comprised Justices Aravind Kumar and NV Anjaria.

  • 3

    Plant capacity stated: The article states the Mundra plant is a 5,200 MW plant.

Takeaways

The Supreme Court ruled Adani Power is not liable for customs duty on electricity supplied from Mundra SEZ to the domestic market and ordered a refund of deposited amounts within eight weeks with no interest.

Topics

World & Politics Policy & Regulation Climate & Environment Energy Law & Public Safety Courts

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