Customs Department Moves SC Against Adani Enterprises Duty-Free Imports Case

The customs department has approached the Supreme Court challenging a tribunal order that quashed its duty evasion case against Adani Enterprises Ltd. The appeal contests a December ruling by the Customs, Excise & Service Tax Appellate Tribunal, which had dismissed the department’s show cause notice and related proceedings.

The case relates to the company’s imports under the erstwhile Duty-Free Credit Entitlement (DFCE) scheme between 2008 and 2010. The department alleged Adani Enterprises imported 25,432.84 kg of gold and 31,219.79 kg of silver bars without paying duties, using DFCE certificates issued by the Directorate General of Foreign Trade in Ahmedabad. The total duty foregone was ₹497.77 million.

Authorities contend that the imported items—gold and silver bars—had no link to the company's exported products, primarily cut and polished diamonds, and hence were ineligible under the scheme. The customs notice, issued in 2012, had sought to recover duties and impose penalties.

The Supreme Court is scheduled to hear the matter on August 12.