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<p data-start="79" data-end="380"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">The Delhi High Court on Friday sought a response from the customs department on IndiGo&rsquo;s petition seeking a refund of over ₹900 crore in customs duty paid on aircraft engines and parts re-imported into India after being repaired abroad. The customs department, however, termed the plea as premature.</span></p>
<p data-start="382" data-end="676"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">During the hearing, the department&rsquo;s lawyer argued that IndiGo could not claim a refund unless the bills of entry were reassessed. &ldquo;Without there being a reassessment, a refund cannot be given, so the writ petition is premature as no reassessment has been carried out at this stage,&rdquo; he said.</span></p>
<p data-start="678" data-end="923"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">The department highlighted that the transaction involved two components: a service element related to the export and subsequent re-import of goods, attracting IGST, and the return of goods to India, on which additional customs duty was levied.</span></p>
<p data-start="925" data-end="1267"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">IndiGo&rsquo;s counsel countered that the airline had already paid basic customs duty without dispute when its aircraft engines and parts were re-imported, and GST had been discharged under the reverse charge mechanism for the repair service. However, customs authorities allegedly treated the same transaction as an import and levied duty again.</span></p>
<p data-start="1269" data-end="1705"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">The lawyer also noted that the customs tribunal had previously ruled that charging customs duty again on such re-imports was unconstitutional. Despite this, IndiGo was compelled to pay the duty to secure clearance for engines and other critical components. &ldquo;I filed more than 4,000 bills of entry under protest because clearances were not allowed, and payment of duty has been made under protest from the beginning,&rdquo; the lawyer added.</span></p>
<p data-start="1707" data-end="1955"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">The airline&rsquo;s refund claims were allegedly refused by customs on the grounds that reassessment of each bill of entry was required. Despite repeated representations, including to the Principal Commissioner, no reassessment orders have been issued.</span></p>
<p data-start="1957" data-end="2199"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Considering the submissions, the court issued notice in IndiGo&rsquo;s petition and fixed April 8 as the next hearing. The order directed the customs department to file its counter-affidavit within six weeks and allowed two weeks for a rejoinder.</span></p>
<p data-start="2201" data-end="2634"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">The petition comes amid ongoing operational challenges for IndiGo, which has faced widespread flight cancellations and disruption across major airports. The airline, which controls over 60% of India&rsquo;s domestic aviation market, cited a combination of pilot shortages, cascading delays from an Airbus A320 software advisory, enforcement of new Flight Duty Time Limitations (FDTL) norms, and a busy winter schedule since late October.</span></p>
<p data-start="2636" data-end="3033"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">The FDTL rules, intended to enhance pilot rest and limit night operations, forced many pilots into mandatory downtime after cumulative delays, straining the airline&rsquo;s high-utilisation model. In response to the crisis, the government temporarily suspended the new pilot rest norms, imposed airfare caps to prevent price escalation, and deployed additional trains to transport stranded passengers.</span></p>
<p data-start="3035" data-end="3179" data-is-last-node="" data-is-only-node=""><span style="font-family: georgia, palatino, serif; font-size: 12pt;">IndiGo&rsquo;s plea for the customs duty refund highlights ongoing regulatory and operational pressures facing the country&rsquo;s largest domestic airline.</span></p>
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The court listed the matter for next hearing on April 8, 2026

Delhi HC issues notice to Customs on IndiGo’s ₹900 crore refund plea on aircraft duty

Delhi HC Seeks Customs Reply on IndiGo Duty Refund

Delhi HC issues notice to Customs on IndiGo’s ₹900 crore refund plea on aircraft duty

December 19, 2025 | 19:01 IST