New Delhi, Sep 23 (UNI) The Supreme Court today held that the transfer of goods from a Domestic Tariff Area (DTA) to a Special Economic Zone (SEZ) constitutes a domestic supply and not an export outside India, thereby ruling that such transactions are not liable for export duty under the Customs Act, 1962.

A bench comprising Justice B.V. Nagarathna and Justice R. Mahadevan dismissed the union Government’s appeal against Adani Power Ltd. and other entities, thereby affirming earlier rulings that favoured the companies.

The Court categorically observed that customs authorities cannot treat the movement of goods to SEZs as export transactions.

“The movement of goods to SEZs qualifies as a domestic supply, and, therefore, no export duty can be levied,” the bench stated.

The Centre had arg

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