In Brief
The Supreme Court upheld a decision awarding carrying cost (restitutionary interest) to Adani Power Ltd. for withdrawal of customs duty and service tax exemptions on its SEZ-located power plant. The Court held that Article 13.2 of the Power Purchase Agreements contains an express restitutionary principle requiring the seller be restored to the same economic position as if the change in law had not occurred. Since the withdrawal of fiscal exemptions by the Ministry of Commerce and Industry in 2015-2016 constituted a qualifying 'Change in Law', carrying cost from the date of withdrawal until CERC approval was payable under the contractual framework, not as extraneous equitable relief. The appeals were dismissed.
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