IndiGo Seeks Rs 900 Crore Customs Duty Refund from Delhi HC on Re-imported Aircraft Parts

Economic Times
Economic Times
2m ago • 1 views
IndiGo contests double customs duty on re-imported aircraft parts, seeking Rs 900 crore refund in Delhi High Court.
IndiGo Seeks Rs 900 Crore Customs Duty Refund from Delhi HC on Re-imported Aircraft Parts
A What happened
IndiGo's parent company, InterGlobe Aviation Ltd, petitioned the Delhi High Court for a refund exceeding Rs 900 crore paid as customs duty on aircraft engines and parts re-imported following overseas repairs. The airline maintains it already paid basic customs duty at re-import and additionally paid GST under reverse charge on repair services, making the second customs duty payment unconstitutional and a double levy. The matter, previously settled by a customs tribunal ruling, was challenged again, highlighting inconsistencies in duty imposition on repaired goods. The case's hearing was postponed after a judge recused herself due to a potential conflict involving a family member employed by IndiGo, delaying judicial review.
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Key insights

  • 1

    Taxation Complexity in Aircraft Maintenance Imports: The dispute exemplifies the challenges in aligning indirect taxes like customs and GST with international repair logistics in aviation, risking double taxation and regulatory uncertainty.

  • 2

    Judicial Conflicts Impact Case Progress: Recusal of a judge due to familial ties reveals how conflicts of interest can delay high-stakes commercial litigation, affecting resolution timelines for major taxpayers.

Takeaways

IndiGo's case underscores persistent challenges in harmonizing indirect tax frameworks on re-imported goods in aviation, with judicial proceedings influencing timelines. The outcome may clarify tax liabilities on repaired imports, shaping future compliance norms.

Topics

World & Politics Policy & Regulation Governance