IndiGo's Legal Battle for Rs 900 Crore Customs Refund

InterGlobe Aviation, the operator of IndiGo, has filed a plea in the Delhi High Court seeking a refund of over Rs 900 crore. The airline argues that the Customs duty paid on re-imported aircraft engines and parts after overseas repairs was unconstitutional. The case awaits hearing by another bench.

InterGlobe Aviation, which operates the popular IndiGo airline, has approached the Delhi High Court demanding a refund exceeding Rs 900 crore. This amount was paid as Customs duty on aircraft engines and parts re-imported into India following overseas repairs.

The case was initially scheduled before Justices Prathiba M Singh and Shail Jain. However, Justice Jain recused herself due to a conflict of interest, as her son is a pilot with IndiGo. The matter is now pending a hearing by a different bench, as directed by the chief justice.

IndiGo contends that imposing Customs duty on these re-imports constitutes a double levy, arguing that it paid both the basic Customs duty and Goods and Services Tax on reverse charge basis when the parts returned after repairs. Despite a tribunal's earlier ruling against such duties, Customs authorities refused IndiGo's refund claims without reassessing each bill of entry.