IndiGo Moves Delhi HC For Rs 900 Crore Customs Duty Refund On Re-Imported Aircraft Parts
IndiGo argued that levying Customs duty on such re-imports amounted to double taxation.
InterGlobe Aviation, operator of IndiGo airline, approached the Delhi High Court on Friday seeking a refund of over Rs 900 crore paid as Customs duty on aircraft engines and parts re-imported into India after overseas repairs.
The plea was listed before a bench of Justices Prathiba M Singh and Shail Jain, but Justice Jain recused herself as her son is a pilot with IndiGo. The matter will now be heard by another bench subject to the chief justice’s orders.
IndiGo argued that levying Customs duty on such re-imports amounted to double taxation. Its counsel said the airline paid basic Customs duty at the time of re-import without dispute and also discharged GST on a reverse charge basis for the repair service.
Despite the airline's claims, Customs authorities insisted on treating the transaction as an import of goods and levied duty again. The airline claimed the issue had been settled earlier by the Customs tribunal, which ruled that duty could not be imposed twice on re-imports after repairs.
IndiGo said the exemption notification was later amended, but the tribunal held the change would apply prospectively. The airline paid the duty under protest for more than 4,000 bills of entry, totaling over Rs 900 crore.
When IndiGo filed refund claims, Customs authorities rejected them, stating the airline must first seek reassessment of each bill of entry.
(With inputs from PTI)
