Air transport services to public at large on payment of published tariff not includible in non-scheduled (passenger) services

East India Hotels Ltd. Vs Commissioner of Customs (Delhi High Court)

Delhi High Court held that non-scheduled (passenger services) as defined under clause (b) of explanation to Condition no. 104 of notification no. 21/2022-CUS, as amended by notification no. 61/2007-CUS, doesn’t include providing air transport services to public at large on payment of published tariff.

Facts- The appellant (East India Hotels Limited) has filed the present appeal impugning an order passed by the Custom, Excise and Service Tax Appellate Tribunal.

The learned Tribunal did not accept that the appellant had complied with the conditions for exemption as set out in the Customs notification no. 21/2022-CUS, as amended by Customs notification no. 61/2007-CUS (hereafter ‘the Notification’). The learned Tribunal held that the aircraft imported by the appellant was used for private purposes and not for providing non-scheduled (passenger) services or non­scheduled (charter) services. Thus, the Condition no.104 of the Notification was violated.

Conclusion- Even though we are not in agreement with the Tribunal that the provision of non-scheduled (passenger) services as defined under clause (b) of explanation to Condition no.104 of the Notification, entails providing air transport services to public at large on payment of published tariff; we agree with the conclusion that the appellant has not complied with the Condition no.104 of the Notification.

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