IndiGo Seeks ₹900 Crore Customs Duty Refund Via Delhi High Court

As per Business Standard report, IndiGo, operated by InterGlobe Aviation, has approached the Delhi High Court seeking a refund of over ₹900 crore.  

The airline claims this amount was paid as customs duty on aircraft engines and parts re-imported into India after repairs abroad, arguing that this constitutes a double levy. 

IndiGo's Argument Against Double Taxation 

IndiGo's legal representative, Advocate V Lakshmikumaran, argued that the imposition of customs duty on re-imports following repairs is unconstitutional, as it results in double taxation.  

The airline had already paid basic customs duty upon re-import and Goods and Services Tax (GST) on a reverse charge basis, since repairs qualify as a service. Despite this, customs authorities allegedly demanded additional duty by treating the re-imported items as fresh imports. 

Previous Rulings and IndiGo's Refund Claims 

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) had previously clarified that duty cannot be charged again on repaired re-imports.  

Although the relevant exemption notification was later amended, the tribunal held that the amendment applied prospectively. IndiGo also highlighted that the High Court had earlier declared such double taxation unconstitutional. 

IndiGo claimed it was compelled to pay the duty under protest to avoid delays in clearing aircraft engines and critical parts, which could have grounded flights. The airline paid the amount across more than 4,000 bills of entry, totalling over ₹900 crore, and subsequently filed refund claims. However, the customs department rejected these claims, insisting on reassessment of each bill of entry before any refund. 

Understanding the Bill of Entry Dispute 

A bill of entry is a legal document filed by an importer with the customs authority, declaring details of arriving goods for clearance, duty assessment, and tax payment. IndiGo countered that since all payments were made under protest and speaking orders had been issued and appealed against, fresh reassessment was unnecessary.  

The airline argued that the department’s reliance on the Supreme Court’s ITC Ltd. judgment was misplaced, as that decision dealt with voluntary payments later claimed as refunds, not payments made under protest following a court ruling. 

Read More: IndiGo Fiasco Reveals the Risks of Monopolistic Dominance in Key Sectors and Its Impact on Customers! 

Legal Context and Potential Impact 

The Delhi High Court had, in March, struck down the additional tax imposed on the repair cost of goods re-imported into India after being sent abroad for maintenance.  

The court declared as unconstitutional a part of the 2021 customs department exemption notification that required payment of Integrated Goods and Services Tax (IGST) and cess on the repair cost of such goods. IndiGo’s petition rests on the argument that it has suffered double taxation on the same overseas repair transaction. 

InterGlobe Aviation Share Price Performance  

As of December 12, 2025, at 3:30 PM, InterGlobe Aviation share price on NSE was closed at ₹4,860.50 up by 0.86% from the previous closing price. 

Conclusion 

IndiGo's petition to the Delhi High Court highlights the ongoing issue of double taxation on re-imported aircraft parts. With previous rulings supporting their stance, the airline seeks a resolution to avoid further financial burdens and operational disruptions. 

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