NEW DELHI, Jan. 5 -- In a significant relief for Adani Power Ltd, the Supreme Court on Monday ruled that customs duty cannot be levied on electricity supplied from a Special Economic Zone (SEZ) to the domestic market, setting aside a 2019 Gujarat High Court judgment and freeing the company from the levy on power generated at its Mundra plant.

A bench of justices Aravind Kumar and Prasanna B. Varale held that the levy lacked the authority of law and that the government cannot retain amounts collected under an invalid tax. The court directed customs authorities to refund the duty collected from Adani Power, asking the jurisdictional Commissioner of Customs to complete verification and issue refunds within eight weeks from the date of the j...