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Informist, Friday, Dec. 12, 2025

 

--InterGlobe Aviation moves HC for INR-9-bln refund in planes reimport case 

--CONTEXT: InterGlobe seeking refund on customs duty for aircraft reimport 

 

NEW DELHI – InterGlobe Aviation Ltd. Friday moved the Delhi High Court, seeking a refund of INR 9 billion paid as customs duty on reimport of aircraft or aircraft parts into India after their repair outside the country. The case came up for a brief hearing before the court. However, after a judge of the division bench recused herself from hearing the case, it will be taken up by another bench for hearing on Dec. 19.

 

InterGlobe Aviation argued that the customs duty levied on these reimports was unconstitutional as it amounted to a double levy on the same transaction. The parent company of IndiGo said that it had paid the basic customs duty without any dispute at the time of reimporting the aircraft or aircraft parts. It had also discharged its goods and services tax on reverse charge basis as repair constituted services, it said. However, the customs department insisted on levying customs duty again by treating the same transaction as import of goods, the petitioner added.

 

It said that the issue was already settled by the Customs, Excise and Service Tax Appellate Tribunal, which ruled that customs duty could not be levied again on reimport of aircraft or aircraft parts into India after their repair outside the country. The customs department compelled the petitioner to pay custom duty to secure clearance of aircraft engines and other parts, InterGlobe Aviation said. Consequently, the company paid the duty under protest to the customs department.

 

However, when the petitioner sought refund of its duty, the department said that the company had to first seek reassessment of each bill of entry. InterGlobe Aviation said it repeatedly requested the higher authorities to pass a reassessment order, but no such order was passed. 

 

In March, the high court had quashed a part of the government's 2021 notification that sought to impose tax on reimport of aircraft or aircraft parts into India after repairs outside the country. Challenging this order, the customs department had moved the Supreme Court, which had issued a notice to InterGlobe Aviation and the company subsequently paid the amount to the customs department.

 

At 1457 IST, shares of InterGlobe Aviation were trading at INR 4,855 on the National Stock Exchange, up 0.7%.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Nishant Maher

 

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