Delhi High Court Seeks Customs Reply in IndiGo Duty Refund Case
The Delhi High Court has asked the Central Board of Indirect Taxes and Customs (CBIC) to file a response in a plea by IndiGo seeking a refund of about ₹900 crore in re-import duties. The airline claims duties were wrongly charged when it re-imported aircraft parts and now wants a clear stance from the customs authority before the court proceeds further.
Court Directs Customs to Respond
A single-judge bench presiding over the matter issued a notice to the customs authorities, asking them to explain their position on IndiGo’s claim. The bench said it will hear the matter again after the Central Board of Indirect Taxes and Customs files its reply. The airline’s plea points to a longstanding dispute over how duties were levied when parts were brought back into India after being sent abroad for repair.
IndiGo’s Position on Duty Refund
IndiGo has told the court that the re-import duties were collected improperly and that it is entitled to a refund under existing customs laws and rules. The airline argued that parts which were initially imported and then sent out for repair should not attract fresh duty upon return, implying that duties paid on re-import should be refunded without dispute.
Customs Law and Industry Impact
The case highlights a broader issue faced by aviation and other industries that regularly export equipment for maintenance and overhaul. Duty treatment on re-imported goods has been contested in several sectors, with companies arguing for clarity and consistency in enforcement to avoid undue financial burden.
Next Steps
The court will take up the matter again once the customs board files its response. Legal experts say the case could have implications beyond IndiGo, potentially affecting how re-import duties are applied and interpreted for corporations that frequently rely on cross-border services.
