Customs – Cestat New Delhi: Issue of violation of condition of exemption for import of aircraft – Held that Customs authorities can proceeded to recover the duty on the basis of the undertaking only when the competent authority in DGCA finds that the appellant had violated the conditions of the permit, which is not the case – Appeal allowed [Order attached]
Order Date – 20 January 2023
M/s. Chimes Aviation Private Limited Vs Commissioner of Customs (Adjudication) New Customs House, Delhi
- The appellant, M/s Chimes Aviation Private Limited imported eleven Aircrafts in 2008 for “flying training” purposes at its training academy at Dhana, District Sagar in the State of Madhya Pradesh. These Aircrafts were cleared under the Exemption Notification dated 01.03.2002, as amended by Notification dated 03.05.20075, under serial no. 347A read with Condition No. 103.
- A show cause notice dated 24.01.2012 was issued to the appellant stating therein that the appellant had imported the Aircrafts for the Flying Training Institute at nil rate of duty by claiming exemption under notification and by specifying and undertaking the end use as “flying training” but the Aircrafts were also being used for “charter service” in violation of the said exemption notification.
- Besides, the appellant had also imported various spare parts for the maintenance of the imported eleven Aircrafts and availed the benefit of duty under the exemption notification.
- It was held that customs authorities could have proceeded to recover the duty on the basis of the undertaking only when the competent authority in the DGCA found as a fact that the appellant had violated the conditions of the permit. In the present case, such a finding has not been recorded and on the other hand, the permits have been renewed from time to time. Customs Appeal No. 55387 of 2013, therefore, deserves to be allowed.