Supreme Court Issues Notice to Adani Enterprises on Customs Department's Appeal Against Tribunal Order

As per the news reports, the Supreme Court has issued notices to Adani Enterprises Ltd, its managing director Rajesh Adani, and others after the Customs Department filed a petition challenging an order by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The Tribunal had earlier set aside a show-cause notice and related proceedings initiated against the company.

Case Background

The Customs Department’s petition relates to imports made by Adani Enterprises under the erstwhile Incremental Export Promotion Scheme. The department claimed that the company obtained Duty-Free Credit Entitlement (DFCE) certificates from the Directorate General of Foreign Trade (DGFT), Ahmedabad, and used them to import gold and silver without paying customs duty.

Alleged Duty Evasion

According to the department, Adani Enterprises imported around 31,219.79 kilograms of silver and 25,432.84 kilograms of gold bars between 2008 and 2010. The department estimated that this resulted in a customs duty loss of approximately ₹49.77 crore. 

It argued that these imports were not linked to the company’s export products, which mainly included cut and polished diamonds, and therefore did not qualify for duty-free status under the scheme.

About the Export Scheme

The Incremental Export Promotion Scheme was introduced in 2003-04. It allowed exporters who achieved at least 25% growth in exports to earn duty credits equivalent to 10% of their incremental exports. These credits could be used to import goods duty-free, provided the imports were related to the exported items. The Customs Department contended that gold and silver bars could not be treated as inputs or replenishments for diamond exports.

Tribunal’s Earlier Decision

In 2012, the Customs Department issued a notice to Adani Enterprises seeking duty, confiscation of the imported goods, and penalties under Section 29 of the Customs Act, 1962. The CESTAT later dismissed the case, stating that valid DFCE licences were used for the imports and that no grounds existed for duty recovery or penalties.

Read More: RBI Recommends Reforms to Strengthen EPFO’s Fund Management!

Adani Enterprises Share Price Performance 

As of October 13, 2025, 09:57 AM, Adani Enterprises share price was trading at ₹2,516.80, a 1.34% decline from the previous closing price.

Conclusion 

The Supreme Court, while issuing the notice on October 10, stated that the matter would be taken up for disposal on the next date of hearing.

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