InterGlobe Aviation, which operates India’s biggest airline IndiGo, filed a petition with the Delhi High Court on Friday to recover almost ₹900 crore from the Customs department.This sum relates to Integrated Goods and Services Tax (IGST) and cess paid on the repair expenses for aircraft parts that were re-imported into India after maintenance abroad.The move follows a major Delhi High Court judgment delivered in March, declaring as unconstitutional the levy of IGST and cess on the repair component of goods re-imported after overseas maintenance.These rulings struck down portions of the 2021 Customs exemption notification, which had sought to tax repair value on re-imports.IndiGo’s fresh plea came up on Friday before a division bench of Justices Prathiba M. Singh and Shail Jain.Also Read | IndiGo board appoints external aviation expert for flight disruptions probeHowever, the matter did not proceed after Justice Shail Jain recused herself, informing the court that her son is a pilot with IndiGo.The case will now be placed before another bench as per the orders of the chief justice.IndiGo argued before that court that the earlier levy amounted to double taxation. The airline submitted that when aircraft engines and parts are sent abroad for repair, ownership remains with the carrier, making the transaction a supply of services rather than goods. Upon re-import, IndiGo pays basic customs duty without dispute and also discharges GST under the reverse charge mechanism on the repair service. Despite this, Customs authorities imposed IGST and cess on the repair value again, effectively taxing the same activity twice, the airline contended.In March, a Division Bench of the Delhi High Court struck down the relevant portion of the 2021 notification, holding that re-imported, repaired goods constitute an import of services, not goods.Legal challengeThe court ruled that IGST on imported services can be levied only under Section 5(1) of the IGST Act, and not via a customs notification. It also rejected the Union government’s stand that the 2021 amendments were merely clarificatory, observing instead that they impermissibly expanded the tax base.Also Read | IndiGo may face CCI enquiry over alleged abuse of market dominance: ReportFollowing the judgment, IndiGo became entitled to seek a refund of the IGST and cess paid under protest—amounting to roughly ₹900 crore—prompting the latest petition.“We approached the department seeking a refund soon after the court struck down the IGST on re-imports. However, the department declined the refund on technical grounds, which forced us to move the court,” said a lawyer involved in the case, requesting anonymity.The dispute stems from the post-GST transition. While initial notices and a 2021 Central Board of Indirect Taxes and Customs (CBIC) circular clarified that IGST applies only to repair, insurance, and freight costs, later notifications sought to expand IGST to re-imports.This sparked a legal chal in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. 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IndiGo approaches Delhi HC for ₹900-crore refund from customs on IGST for re-imported components
