East India Hotels Ltd. Vs Commissioner of Customs (Delhi High Court)
The appeal concerns the challenge by the appellant against an order of the Customs, Excise and Service Tax Appellate Tribunal (the Tribunal) dated 14 January 2020, by which the Tribunal dismissed the appellant’s challenge to an earlier order passed by the Commissioner of Customs on 27 July 2010. The Tribunal held that the appellant had wrongly availed duty exemption under Customs Notification No. 21/2002-CUS, as amended by Notification No. 61/2007-CUS, on the ground that the aircraft imported by it had been used for private purposes rather than for providing non-scheduled (passenger) or non-scheduled (charter) services as required under Condition No. 104 of the Notification.
The appellant imported a Hawker 850 XP aircraft in May 2007, having earlier received a DGCA permit to operate non-scheduled (passenger) services and a No Objection Certificate from the Ministry of Civil Aviation. At the time of import, the appellant furnished an undertaking to Customs that the aircraft would be used solely for non-scheduled (passenger) services, failing which it would pay the duty amount of approximately ₹13.92 crore. Later, the Customs Department issued a show cause notice alleging misrepresentation and private use of the aircraft, contending that the flights were operated without remuneration and solely for the travel of the company’s senior officials and directors.
