The Delhi High Court on Friday sought a response from the Customs department on a plea filed by InterGlobe Aviation, which operates IndiGo airline, seeking a refund of over ₹900 crore paid as Customs duty on aircraft engines and parts re-imported into India after overseas repairs.
A Division Bench of Justices V. Kameswar Rao and Vinod Kumar issued notice to the Deputy Commissioner (Refund) in the office of the Principal Commissioner of Customs, Air Cargo Complex (Import), directing the authorities to file a counter affidavit within two weeks. The matter has been listed for further hearing on April 8, 2026.
InterGlobe has challenged the levy of Customs duty on the re-import of aircraft engines and components sent abroad for repairs, contending that the demand is unconstitutional and results in a double levy on the same transaction. The airline argued that once Customs duty had already been paid at the time of original import, the re-import after repairs could not be treated as a fresh import of goods.
Opposing the plea, counsel appearing for the Customs department submitted that the petition was premature, stating that the core issue raised by InterGlobe is already pending before the Supreme Court. It was argued that since there is no stay order from the apex court, the High Court should grant time to the department to file its reply.
On behalf of InterGlobe, counsel submitted that at the time of re-import of aircraft engines and parts after repairs, the airline paid the basic Customs duty without dispute. It was further pointed out that since repair activity constitutes a service, the airline also discharged Goods and Services Tax (GST) on a reverse charge basis.
Despite this, the Customs authorities insisted on levying duty again by treating the transaction as an import of goods, the airline claimed. InterGlobe relied on earlier rulings of the Customs tribunal, which had held that Customs duty could not be levied again on re-imports following repairs.
The airline further stated that although the relevant exemption notification was subsequently amended, the tribunal had clarified that the amendment would apply only prospectively. According to InterGlobe, it paid duty under protest for over 4,000 bills of entry, amounting to more than ₹900 crore.
When the airline later sought refunds, the Customs authorities rejected the claims on the ground that InterGlobe must first seek reassessment of each individual bill of entry, prompting the present petition before the High Court.
