IndiGo moves Delhi HC over Rs 900 crore customs duty refund on re-import of aircraft parts: Report

IndiGo's parent company, InterGlobe Aviation Ltd, has moved the Delhi High Court seeking a refund of over Rs 900 crore paid as customs duty on aircraft engines and parts re-imported into India after overseas repairs, reported Bar and Bench.

The matter was heard on Friday by a Division Bench of Justices Prathiba M Singh and Shail Jain before whom IndiGo argued that the levy of customs duty on such re-imports was unconstitutional and amounted to double levy on the same transaction, according to the report.

However, Justice Shail Jain recused from hearing the matter as her son is a pilot with IndiGo. The case will now come up before another Bench subject to the order of the Chief Justice.


Advocate V. Lakshmikumaran, representing IndiGo, told the court that the airline had already paid basic customs duty without dispute when re-importing aircraft engines and parts after repairs. Since the repair work amounted to a service, the airline also paid GST under the reverse charge mechanism. Despite this, customs officials sought to impose duty a second time by treating the re-imported items as fresh imports of goods.

The airline argued that the matter had previously been settled by the customs tribunal, which ruled that customs duty cannot be levied again on repaired items brought back into the country.