SEZ Electricity Not Liable to Customs Duty Due to No Import Event: SC

Adani Power Ltd. & Anr Vs Union of India & Ors. (Supreme Court of India) Customs Duty on SEZ-to-DTA Electricity Is Ultra Vires: Delegated Legislation Cannot Create a Tax or Defy Binding Precedent The Supreme Court held that customs duty cannot be levied on electrical energy generated in a Special Economic Zone (SEZ) and supplied to the Domestic Tariff Area (DTA) in the absence of a lawful charging provision. The Court affirmed that Section 12 of the Customs Act, 1962 authorises levy only on goods “imported into India”, and electricity generated within India in an SEZ and wheeled in...