IndiGo Seeks Rs 900 Cr Customs Duty Refund in Delhi HC

New Delhi, Dec 12 (PTI) InterGlobe Aviation, which operates the IndiGo airline, on Friday approached the Delhi High Court seeking refund of more than Rs 900 crore paid as Customs duty on aircraft engines and parts re-imported into India after overseas repairs.

The plea came up before a bench of Justices Prathiba M Singh and Shail Jain. However, Justice Jain recused herself from hearing the matter since her son is a pilot with IndiGo.

The matter will now be heard by another bench subject to the orders of the chief justice.

IndiGo, in its plea, contended that the levy of Customs duty on such re-imports was unconstitutional and amounted to double levy on the same transaction.

Its counsel submitted that at the time of re-import of aircraft engines and parts after repairs, it paid basic Customs duty without any dispute.


Besides, since the repair constitutes a service, it also discharged Goods and Services Tax (GST) on a reverse charge basis.

However, the Customs authorities insisted on levying Customs duty again by treating the same transaction as import of goods, the counsel said.

The airline claimed the issue was settled earlier by the Customs tribunal, which held that Customs duty could not be levied again on re-imports following repairs.

It said the exemption notification was later amended but the tribunal ruled that the amendment would apply only prospectively.

The airline said it paid the duty under protest for more than 4,000 bills of entry, amounting to more than Rs 900 crore.

When IndiGo later filed refund claims, the Customs authorities refused them on the ground that the airline must first seek reassessment of each bill of entry.