Relief to Adani Power: Export Duty Not Applicable on Transfer from Domestic Tariff Area to SEZ – Supreme Court

The Supreme Court ruled in favor of Adani Power, holding that export duty does not apply when goods are transferred from a Domestic Tariff Area (DTA) to a Special Economic Zone (SEZ). The company had challenged the levy, arguing that SEZ transfers are meant to facilitate exports and should not attract export duties intended for shipments to international markets. The Court emphasized that the policy intent of SEZs is to incentivize economic activity without imposing additional fiscal burdens. This ruling provides clarity for companies operating in DTA-to-SEZ transfers across sectors, ensuring that indirect tax laws are applied in alignment with government objectives. The decision safeguards businesses from unintended taxation, encouraging the growth of SEZ-based industries and investment in export-oriented operations. It also strengthens the predictability of fiscal obligations in supply chain management between domestic and SEZ units.