Supreme Court dismissing Customs Department’s appeal against APML, APRL, MEGPTCL & others in alleged over-valuation of imported goods matter
Hon’ble Supreme Court dismissing Customs Department’s appeal against Adani Power Maharashtra Ltd. (APML), Adani Power Rajasthan Ltd. (APRL), Maharashtra Eastern Grid Power Transmission Co. Ltd. (MEGPTCL) & others in alleged over-valuation of imported goods matter.
Today, Hon’ble Supreme Court after hearing both sides for considerable time, dismissed the Appeals filed by Customs Department against APML, APRL, MEGPTCL and others. Hon’ble Supreme Court found that the project cost of APML, APRL & MEGPTCL was either similar or lower than the price of peers/competitors. Price is lesser than the benchmark per megawatt cost fixed by Central Electricity Regulatory Commission. The Contract was an EPC contract awarded to lowest bidder following worldwide bidding called International Competitive Bidding. Hon’ble Supreme Court thereby upheld the findings of both the Lower Authorities i.e. Adjudicating Authority as well as Appellate Tribunal (CESTAT) and confirmed that there was no overvaluation in import of capital goods.
APML & APRL following International Competitive Bidding (ICB) imported goods required for setting up of Thermal Power Project in the state of Maharashtra & Rajasthan. Likewise, consortium led by PMC Projects (India) Pvt. Ltd. who was awarded the contract following ICB, imported goods for setting up of Transmission Line & Substation package for MEGPTCL. In May 2014, the Directorate of Revenue Intelligence (DRI) issued SCNs to APML, APRL, MEGPTCL and others alleging over-valuation in import of capital goods.
In 2017, the Adjudicating Authority of DRI i.e. the same authority who issued the SCNs after dealing with in detail, held that all the imports were genuine being undertaken at arm’s length and concluded that the value declared is correct and is not required to be re-determined. SCN were dropped. On appeal by Customs Department, Appellate tribunal after hearing both sides elaborately, in 2022 dismissed the appeal filed by Customs Department and confirmed that there was no overvaluation while importing the equipments by Adani.
*Order of Hon’ble Supreme Court* : Customs Department challenged Appellate Orders before Supreme Court. Hon’ble Supreme Court heard the matter from time to time and today after hearing both sides for considerable time while dismissing the appeal filed by Customs Department confirmed that there was no overvaluation in import of capital goods by Adani.
