The Supreme Court of India dismissed the Customs Department’s appeal in a Rs 2.53 crore duty dispute involving InterGlobe Aviation Ltd. (IndiGo), upholding the Customs Excise and Service Tax Appellate Tribunal ruling that imported aircraft engine stands qualify as “containers,” not “trailers,” under the Customs Tariff.
NEW DELHI: The Supreme Court dismissed an appeal from the Customs Department regarding a Rs 2.53 crore duty dispute involving InterGlobe Aviation Ltd. (IndiGo).
A bench consisting of Justices JB Pardiwala and Vijay Bishnoi upheld a ruling by the Customs Excise Service Tax Appellate Tribunal (CESTAT), which determined that aircraft engine stands imported by the airline are classified as “containers” rather than “trailers” under the Customs Tariff.
The Court rejected the Customs Department’s appeal based on the delay in filing the case, siding with the CESTAT judgment from February 2025.
The issue stemmed from the importation of aircraft engine stands alongside engines between April 2018 and March 2019. IndiGo classified the stands under Customs Tariff Item (CTI) 8609 00 00, which pertains to containers specially designed for multi-modal transport. Conversely, the Customs Department argued that the stands operated similarly to trailers used for moving aircraft engines and should be categorized under CTI 8716 39 00, which includes trailers and semi-trailers.
Acting on this classification, the department issued a show cause notice claiming short payment of duty and sought Rs 2.53 crore in differential customs duty, along with interest and penalties. The Principal Commissioner of Customs (Import) in New Delhi confirmed this demand in an order dated January 30, 2020.
IndiGo contested this decision before CESTAT in New Delhi. In February 2025, a bench led by Justice Dilip Gupta (President) and Technical Member PV Subba Rao ruled in favor of the airline, stating that
“the essential character of the aircraft engine stand is derived from the cradle or holder that secures the engine rather than from the caster wheels attached to the stand.”
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The tribunal noted that the stands are specifically designed to secure and protect aircraft engines during transportation and repair, while other transport modes, such as trucks, aircraft, or vessels, actually move the engines.
Since the stands act as specialized containers designed for transportation across various methods, the tribunal concluded they fell under CTI 8609 and not trailers, ultimately setting aside the Commissioner’s order.
The Customs Department subsequently challenged the tribunal’s decision at the Supreme Court. The apex court dismissed the appeal, thereby endorsing the tribunal’s conclusion that aircraft engine stands are indeed classified as containers under the Customs Tariff.
Advocate Chandrasekara Bharati Venkataraman represented the Customs Department, while Advocate V Lakshmikumaran represented IndiGo.
Case Title: Commissioner of Customs Vs Interglobe Aviation.
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