A Delhi High Court judge recused herself on Friday from hearing IndiGo&rsquo;s plea seeking a refund of more than ₹900 crore in customs duty paid on aircraft engines and parts re-imported after overseas repairs. Justice Shail Jain stepped away from the case after disclosing that her son works as a pilot with IndiGo. The matter, initially listed before a bench of Justices Prathiba M Singh and Jain, will now be assigned to another bench and is likely to be heard on December 19.
IndiGo told the court that it had already paid the basic customs duty due on re-imported repaired components. The airline said that since repairs are treated as a service, it had also paid GST under the reverse charge mechanism. However, customs authorities allegedly treated the repaired components as goods being imported again and demanded customs duty a second time.
The airline argued that a tribunal had previously ruled that such double taxation on re-imports was unconstitutional, yet customs officials still compelled IndiGo to pay over ₹900 crore to clear aircraft engines and essential parts. When the airline later sought a refund, its claims were rejected on the grounds that it must first obtain reassessment of each bill of entry. IndiGo said multiple written requests to senior officials have gone unanswered.
The petition comes at one of the most turbulent moments in IndiGo&rsquo;s recent history. The airline has been grappling with unprecedented operational disruptions that triggered thousands of cancellations and left passengers stranded nationwide. IndiGo attributed the chaos to a mix of pilot shortages, cascading delays linked to an Airbus A320 software advisory, new fatigue-management rules and an ambitious winter schedule.
The new pilot rest norms pushed hundreds of pilots into mandatory downtime when accumulated delays exceeded cut-off limits, causing IndiGo&rsquo;s tightly packed flight roster to unravel. In response to the crisis, the government temporarily suspended the new rules, capped airfares and even arranged special trains to help stranded passengers.
On Tuesday, the aviation ministry directed IndiGo to reduce its flight operations by 10 percent to stabilise schedules and reduce cancellations. The Delhi High Court also questioned the government and the DGCA for failing to act sooner despite clear signs that the airline lacked adequate manpower to implement the new rest norms.
As IndiGo continues to navigate the fallout from its operational meltdown, its legal battle over customs duties adds yet another layer of pressure for the country&rsquo;s largest carrier.

Delhi HC Judge Steps Aside in IndiGo Refund Case

IndiGo seeks ₹900 Cr customs refund as airline battles operational turmoil & cancellations

Delhi HC Judge Steps Aside in IndiGo Refund Case

IndiGo seeks ₹900 Cr customs refund as airline battles operational turmoil & cancellations

December 12, 2025 | 19:04 IST