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Journalism of Courage
In a shot in the arm for the Adani group, the Supreme Court has dismissed the appeal filed by the Customs department against its subsidiaries – Adani Power Maharashtra Ltd and Adani Power Rajasthan Ltd — in a case of alleged over-invoicing of imported goods.
A bench of Justices Krishna Murari and Sanjay Carol which heard the two sides in detail Monday said it found no reason to interfere with the finding of facts by the authorities below.
“We have heard Mr. Balbir Singh, learned Additional Solicitor General appearing for the appellant(s) and Mr. Mukul Rohatgi, learned senior counsel appearing for the respondents at length. We are of the considered opinion that the matters are concluded by the findings of fact recorded by the authorities below and the impugned order(s) does not require any interference at our behest. The appeals accordingly stand dismissed”, the court said in its order.
The appeals were filed against the July 2022 order of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) which had quashed the case of alleged over-invoicing by the Adani group companies for capital goods imported to set up power projects at Tiroda in Maharashtra and Kawal in Rajasthan.
The Tribunal concluded that “there is…absolutely no evidence available on record which can doubt the correctness of the transaction value declared by” the firms.
The Directorate of Revenue Intelligence (DRI) had issued show cause notice to the Adani firms in 2014 alleging over valuation. However in 2017, the adjudicating authority of the DRI set aside the notice and gave a clean to the companies.
The development comes at a time when the company’s shares have taken a hit following the claims made in the report by USA-based short seller Hindenburg Research.
The DRI allegations in the over-invoicing matter had found mention in the Hindenburg report.
