Case Law Details
M/s Escorts Limited Vs CST (CESTAT Delhi)
It is not in dispute that the appellant is in possession of permit to operate ‘Non-scheduled Air Transport Services and have been permitted to use Bell-407 helicopter with the sitting capacity of six persons. The permit further stipulate that it is for passenger services and has been renewed from time to time. As per the practice adopted by the appellant, the aircraft is made available under charter hire as per the terms and conditions attached to the invoice issued in favour of the organisation hiring the aircraft. We have perused Invoice No. 14:09:10 dated 18.12.2009 which is issued in favour of M/s Aviation Services India, New Delhi. As per the said invoice the helicopter has been chartered for the period 06.12.2009 to 17.12.2009 for flying time of 32:05 hrs. for use in Delhi-Ranchi and local flying in Jharkhand – Ranchi – Delhi. From the above invoice it is evident that the entire helicopter has been given on hire for the use of charterer. It is evident from the other terms and conditions that the same is supplied alongwith licenced/ trained pilot and necessary engineering crew to operate the helicopter. It is noteworthy that individual seat is not offered by the appellant but the complete Further, the aircraft has been allowed to be used by the charterer but the effective control and possession remains with the appellant. The appellant will charge the charterer on the basis of the actual time consumed on engine on to engine off.
We note that an identical issue regarding charter hire of helicopter came up before the Tribunal in the case of Global Vectra Helicorp Ltd. vs. CC (Import) Mumbai -2016 (42)STR 118 (Tri. Mum.), in that case the appellant therein claimed the classification of their service as Transportation of Passengers by Air Service. But, the Tribunal after very detailed discussion of the facts and various case law on the subject as well as CBEC Circular No. 20/2009 dt. 09.02.2009 came to the conclusion that the services will be rightly classifiable under the category of “Supply to Tangible Goods Service”.
FULL TEXT OF THE CESTAT JUDGMENT
The present appeal is directed against the Order-in-Appeal No. 60/ST/Appeal/DLH-IV/2013 dated 16.08.2013 passed by the Commissioner (Appeals), Central Excise, Delhi-IV.
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