New Delhi | January 6, 2026
The Supreme Court on Monday set aside a 2019 Gujarat High Court judgment that had denied relief to Adani Power Ltd in a dispute over the levy of customs duty on electricity supplied from a Special Economic Zone (SEZ) to the Domestic Tariff Area (DTA).
A bench comprising Justice Aravind Kumar and Justice N.V. Anjaria held that the High Court erred in refusing relief despite the issue having already been conclusively settled in Adani Power’s favor in an earlier ruling.
The bench noted that the Gujarat High Court, in its July 2015 decision, had quashed the levy of customs duty imposed on electricity supplied from Adani Power’s SEZ unit to the DTA for the period between June 26, 2009, and September 15, 2010. The Supreme Court had declined to interfere with that 2015 ruling in November of the same year, effectively giving it finality.
What the Supreme Court Said
In its judgment, the court emphasized that once a tax levy has been declared beyond jurisdiction and that decision has attained finality, executive authorities are duty-bound to align their actions accordingly.
“Judicial decisions are not advisory opinions; they are binding declarations of law,” the bench observed. It added that continuing to enforce a judicially invalidated tax under a different pretext violates constitutional discipline and undermines public confidence in the rule of law.
Warning Against Repetitive Litigation
The Supreme Court also expressed concern over unnecessary litigation arising from repeated attempts to revive invalidated levies.
“Fair adjudication is an essential component of good governance. Reintroducing a tax already declared invalid through successive notifications leads to avoidable litigation, burdens courts, and subjects citizens to prolonged uncertainty,” the judgment stated.
The bench said authorities should have treated the matter as closed and extended the benefit of the 2015 ruling to subsequent periods unless the law was changed through legislative intervention.
Appeal Against 2019 High Court Order
The ruling came on appeals filed by Adani Power Ltd and others challenging the Gujarat High Court’s June 28, 2019 judgment, which had refused to extend the benefit of the earlier ruling to later periods.
With Monday’s verdict, the Supreme Court has reaffirmed the binding nature of final judicial decisions and provided clarity on the treatment of SEZ-to-DTA electricity supplies under customs law.
