New Delhi: IndiGo, India's largest airline, has approached the Delhi High Court seeking a refund of over ₹900 crore in customs duty. The airline claims it was wrongly charged on aircraft engines and parts re-imported into India after overseas repairs. This legal challenge highlights a dispute over whether these re-imports should be taxed as goods or services, with IndiGo arguing for double taxation. ## Airline Challenges Double Taxation Claim InterGlobe Aviation Ltd, IndiGo's parent company, filed the petition on Friday. The airline told the court that it already pays basic customs duty without dispute when re-importing aircraft parts after repairs. Additionally, because the repair work is a service, IndiGo also pays Goods and Services Tax (GST) under the reverse charge mechanism. Des^[1][2][4]pite this, customs authorities have insisted on levying customs duty a second time. They treat the re-imported items as fresh imports of goods. Ad^[1][3][5]vocate V. Lakshmikumaran, representing IndiGo, told the court that this double levy is unconstitutional. The^[1][3] airline argued that previous rulings by the customs tribunal have already stated that customs duty cannot be imposed again on repaired items brought back into the country. ## Judge Recuses from Hearing The case initially came before a Division Bench of Justices Prathiba M. Singh and Shail Jain. However, Justice Shail Jain recused herself from the hearing. She cited a conflict of interest because her son works as a pilot with IndiGo. The^[1][2][7] matter will now be placed before another bench, as directed by the Chief Justice. In^[1][3]diGo stated it was compelled to pay the customs duty "under protest" across more than 4,000 bills of entry. This was done to secure timely clearance of critical aircraft components. The airline emphasized that grounding aircraft for extended periods was not a feasible option. Customs clearance depends on departmental approval, unlike GST, which is self-assessed. The^[2][8] airline's refund claims were later rejected by customs authorities. Officials insisted that each bill of entry needed reassessment before any refund could be processed. ## Prior Rulings Support IndiGo's Stance This current petition follows a significant Delhi High Court judgment delivered in March 2025. That ruling declared the levy of Integrated Goods and Services Tax (IGST) and cess on the repair component of goods re-imported after overseas maintenance as unconstitutional. The^[4][6] court struck down portions of a 2021 Customs exemption notification that sought to tax the repair value on re-imports. In^[4][6] that March ruling, the Delhi High Court held that re-imported, repaired goods constitute an import of services, not goods. Ind^[4]iGo had challenged the notification and the IGST levy on re-imported aircraft and parts following repairs in that earlier case. The^[3] broader legal issue of customs duty on re-imported repaired parts is now pending before the Supreme Court. ## Industry Impact and Future Steps The outcome of this case could have significant implications for all Indian airlines. Many carriers rely on overseas repairs for aircraft components. The dispute centers on whether these re-imports should be subjected to both customs duty and GST, which IndiGo views as an unfair double taxation. In^[9][11]diGo's legal action underscores the ongoing challenges airlines face with tax interpretations on international maintenance operations. The airline's operations have also been under scrutiny for flight disruptions recently. The^[12] Delhi High Court will now assign a new bench to hear the case, with a decision expected to clarify the tax treatment of re-imported aircraft parts across the aviation sector. ME^[1][7]TA_TITLE: IndiGo Seeks ₹900 Crore Customs Duty Refund in Delhi High Court

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