IndiGo seeks ₹900 crore refund on customs and GST for re-imported aircraft parts, citing unconstitutional double taxation.

The Delhi High Court has directed India’s Customs Department to respond to a plea by IndiGo Airlines seeking a ₹900 crore refund for customs duty and GST paid on re-imported aircraft parts repaired overseas. The airline argues the levies constitute unconstitutional double taxation, as the goods were already taxed upon initial import and the repair service was subject to GST under reverse charge. It claims it paid the duty under protest on over 4,000 bills of entry to avoid grounding flights, relying on a prior tribunal ruling that deemed such duties unlawful. Customs rejected the refund claims, demanding reassessment of each entry, but IndiGo contends the prior ruling invalidated the assessments. The case is set for hearing on April 8, 2026, with a Supreme Court appeal on the same issue pending.