IndiGo's IGST dispute with the customs department about re-imported airplane parts will be heard by the Supreme Court

The customs department and InterGlobe Aviation Ltd., the company that runs India's biggest airline, IndiGo, are at odds over whether the Integrated Goods and Services Tax (IGST) should be applied to the cost of repairing goods that are brought back into India after being sent overseas for maintenance. On Monday, the Supreme Court agreed to look into the matter.

The custom department's case was heard by a bench of Justices B.V. Nagarathna and R. Mahadevan, who then sent a notice to IndiGo. The issue made its way to the highest court after the customs department appealed a March Delhi High Court decision that declared section of a 2021 customs notification that required payment of IGST and cess on such re-imported products to be unconstitutional.

Speaking on behalf of the customs department, Additional Solicitor General N. Venkataraman stated, "This case has raised a significant constitutional issue. We are harmed by the ruling, which deems the law illegal and impacts all imports. However, IndiGo's attorneys informed the court that officials had disregarded the decision and that the airline was still waiting for refunds from the department in spite of the high court's order. "All of our refunds are currently getting stuck. They claimed that they were not following the [high] court's directive. At the time of publication, Indigo had not responded to any of the emailed inquiries.