IndiGo Battles Customs for Rs 900 Crore Refund

The Delhi High Court has asked the Customs department to respond to InterGlobe Aviation's plea for a refund of over Rs 900 crore paid as Customs duty on re-imported aircraft parts. The company argues that the duty is unconstitutional and a double levy, but Customs disagrees, citing ongoing Supreme Court deliberations.

On Friday, the Delhi High Court sought a response from the Customs department regarding a refund plea by InterGlobe Aviation, the parent company of IndiGo airlines. The airline is seeking a refund of more than Rs 900 crore paid as Customs duty on aircraft engines and parts re-imported into India post-repair.

A bench of Justices V Kameswar Rao and Vinod Kumar issued a notice to the deputy commissioner of Customs and asked for a counter affidavit within two weeks. The case is scheduled for its next hearing on April 8, 2026.

IndiGo claims that the imposition of Customs duty on these re-imports is unconstitutional, equating to a double levy. However, the Customs department described the plea as premature, noting that the related issue is presently pending in the Supreme Court. Despite the argument from InterGlobe that previous Customs tribunal decisions support their stance, Customs authorities have refused their refund claims until each bill of entry is reassessed.

(With inputs from agencies.)