SEZ to DTA electricity duty turns on the charging provision, parity rule, and unresolved rate issues.
Customs duty on electricity supplied from a Special Economic Zone to the Domestic Tariff Area was examined in light of the charging provision in the Customs Act and the parity mechanism in the SEZ Act. The Supreme Court held that no customs duty was leviable on electricity generated in an SEZ and supplied to the DTA for the period up to 15 February 2016, reasoning that such clearance is not an import into India and that Section 30 of the SEZ Act is only a parity provision. The article also notes unresolved questions for later periods, including the applicable rate, concessional SEZ notifications, and the interaction with drawback under the Customs Act. (AI Summary)