Day 36
JudiciarySkim2026-01-05
SC Strikes Down Retrospective SEZ Customs Duty
What Happened
The Supreme Court struck down a retrospective customs duty levy on electricity supplied from SEZs to the Domestic Tariff Area. The Court ruled that the executive cannot impose or retain taxes without clear legal authority under Article 265 of the Constitution. It held that delegated legislation cannot create retrospective tax liabilities unless specifically authorized by the parent Act.
Why It Matters
This reaffirms the constitutional principle of 'no taxation without authority of law' and limits executive overreach in using delegated legislation to impose retroactive financial burdens.
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