HAL Fire Extinguishers In Su30MKI Jets Are Integral Aircraft Parts Exempt From Duty: CESTAT Delhi

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that fire extinguishers installed by Hindustan Aeronautics Limited (HAL) in Su30MKI fighter jets qualify as integral aircraft parts and cannot be treated as stand-alone safety equipment to deny customs duty exemption.

A Bench comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya, on 9 January 2026, set aside the differential customs duty demand of Rs. 92 lakh against HAL .

Emphasising the importance of the Ministry of Defence clarification in deciding eligibility for customs duty exemption on specialised, defence-certified equipment, the CESTAT Delhi observed:

“The declaration issued by the Ministry of Defense clearly states that the fire extinguishers are mandatory for the issuance of certificate of safety of flight and that they are specifically designed for aircrafts shows that the fire extinguisher is an integral part of the aircraft without which the aircraft will not be able to be airborne."

In the present dispute, HAL had supplied fire extinguishers for installation in Su30MKI fighter jets. The Customs Department had contended that the fire extinguishers were stand-alone safety equipment, not aircraft parts and that HAL had wrongly claimed the exemption on the fire extinguishers, leading to short payment of customs duty and integrated goods and services tax (IGST).

HAL submitted that the fire extinguisher system is built into the aircraft with sensors that automatically deploy the extinguishing agent mid-air. It relied on Ministry of Defence declarations and highlighted the aircraft's Part Catalogue and Standard Operating Procedures (SOPs), which list fire extinguishers as essential components.

The CESTAT Delhi held that the Ministry of Defence mandates aircraft-specific fire extinguishers for the issuance of the Certificate of Airworthiness.

The Tribunal also relied on the decisions in MAK Controls and High Energy Batteries to emphasise that integration, purpose, and certification determine classification.

Accordingly, the Tribunal allowed HAL's appeal and remitted the matter to the Adjudicating Authority for a fresh decision.

For Appellant: Advocates Priyanka Rathi, Priyanshi Chakarborty

For Respondent: Mr. Shiv Shankar (Authorized Representative)