The Supreme Court allowed the State of Maharashtra's appeal, upholding its power to withdraw electricity duty exemptions for captive power producers.
The Court held that while the state can withdraw exemptions, it must provide a reasonable notice period of one year for industries to adjust.
The decision overturns a High Court ruling that had struck down notifications withdrawing the duty exemption for captive power producers.
The ruling balances the state's fiscal needs with the legitimate expectations of industries that invested in captive power generation.