Fri Dec 19 07:00:21 UTC 2025: Summary:
IndiGo airline’s parent company, InterGlobe Aviation, is seeking a refund of over ₹900 crore in Customs duty paid on re-imported aircraft engines and parts after overseas repairs. They argue the levy is unconstitutional, representing a double taxation since GST was already paid on the repair service. The Delhi High Court has requested the Customs department to respond to the plea. Customs argues the claim is premature as a similar issue is pending before the Supreme Court. InterGlobe contends that Customs authorities insisted on levying duty again by treating the same transaction as import of goods, even though GST was already paid and the Customs tribunal had previously ruled against levying Customs duty on re-imports after repairs.
News Article:
IndiGo Seeks ₹900 Crore Customs Duty Refund in Delhi High Court
New Delhi, December 19, 2025 – InterGlobe Aviation, the parent company of IndiGo airline, has filed a plea in the Delhi High Court seeking a refund of over ₹900 crore paid in Customs duty. The duty was levied on aircraft engines and parts that were re-imported into India after undergoing repairs overseas.
The airline argues that the Customs duty is unconstitutional, essentially creating a double taxation scenario. According to InterGlobe, they had already paid Goods and Services Tax (GST) on the repair services under a reverse charge basis.
A division bench of the Delhi High Court, comprising Justices V Kameswar Rao and Vinod Kumar, has issued a notice to the Customs department, demanding a response within two weeks. The next hearing is scheduled for April 8, 2026.
Counsel for the Customs department countered, arguing the plea is premature as the core issue is currently pending before the Supreme Court. They requested time to file a formal reply.
InterGlobe’s counsel argued that despite having previously paid basic Customs duty without dispute and subsequently paying GST on the service component, Customs authorities are insisting on treating the same transaction as the import of goods, thus levying duty a second time. They further stated that the Customs tribunal had earlier ruled that Customs duty could not be levied again on re-imports following repairs. InterGlobe is claiming they paid the contested duty under protest for over 4,000 bills of entry.
The case highlights a potential conflict in how repairs and re-imports of aircraft parts are being treated under Indian tax law. The outcome could have significant implications for the aviation industry.
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