The Government has sought the Supreme Court's intervention in deciding whether goods sent from a unit in a domestic tariff area to another unit in a special economic zone (SEZ) will attract customs duty.
The Ministry of Commerce had dragged the Essar group to court alleging that iron ore pellets and calibrated iron ore supplied by an Essar unit to the Essar SEZ, Hazira, are goods exported from India for the purpose of such levy.
A bench headed by Justice S H Kapadia, however, adjourned the matter till April 9.
The petition filed by the Ministry has challenged the Punjab and Haryana High Court's interim order that allowed Essar Steel to continue its arrangement without paying customs duty on goods supplied from its domestic tariff area (DTA) unit at Vizag to the Hazira SEZ unit.
The High Court had ordered that Essar was not liable to pay customs duty in the absence of any specific provisions under the SEZ Act, 2005, to levy customs duty or any corresponding amendment in the Customs Act, 1962.