Hon’ble SC affirms no export duty from DTA to SEZ

The Supreme Court of India in Union of India v. Adani Power Ltd. and connected appeals has finally settled a long-standing dispute concerning the levy of export duty on supplies made from the Domestic Tariff Area (DTA) to Special Economic Zones (SEZs). For over a decade, the question of whether such supplies could be treated as “exports” under the Customs Act, 1962, and consequently attract export duty, had been subject to conflicting interpretations by revenue authorities and industry stakeholders. Various High Courts, including those of Gujarat, Andhra Pradesh, Karnataka, and Madras, had consistently held that such supplies are not subject to export duty. Quick snapshot by J the App by JustIDT where the Honble SC has affirmed the positions taken by the HCs and dismissed Revenue appeals.