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Informist, Friday, Dec. 19, 2025

 

--HC notice to customs dept on InterGlobe Aviation plea for INR 9-bln refund 

--HC to hear InterGlobe Aviation's plea against customs dept on Apr 8 

 

NEW DELHI – The Delhi High Court Friday issued a notice to the customs department on a plea by InterGlobe Aviation Ltd. seeking 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 high court will hear InterGlobe Aviation's plea against the customs department on Apr. 8.

 

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.

 

The petitioner 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 customs 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. 

 

At 1118 IST, shares of InterGlobe Aviation were up  0.1% at INR 5,121.00 on the National Stock Exchange.  End

 

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

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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