Indian Metal and Ferro Alloys Limited Vs Commissioner of Customs (Preventive) (CESTAT Delhi)
CESTAT Delhi held that since imported helicopter is used for private purpose without any remuneration earned from such flights, there is no substantial compliance of Condition No. 104 of Exemption Notification no. 61 of 2017 dated 03.05.2007. Accordingly, confiscation of helicopter upheld.
Facts- The appellant is a company incorporated under the Companies Act and has its registered office at Bomikhal, Rasulgarh. The appellant imported Robinson R-44, Ravin II Helicopter to expand its fleet. It was granted a Non Scheduled Air Transport Services (Passenger) Permit by the Director General of Civil Aviation5, Ministry of Civil Aviation6. It is said that the permit was renewed by DGCA from time to time.
The appellant had imported the aircraft claiming customs duty exemption under Notification No. 61 of 2017 dated 03.05.20077 that amended the earlier Exemption Notification No. 21 of 2002 dated 01.03.2002. Prior to importing the aircraft, the appellant had obtained the no objection certificate from DGCA on 05.09.2007 to operate the aircraft for non scheduled air transport (passenger) services.
The Exemption Notification dated 03.05.2007, on which revolves the entire controversy, grants „nil‟ rate of duty on import of aircraft for non-scheduled (passenger) services as well as non-scheduled (charter) services subject to Condition No. 104 that is required to be fulfilled by an importer of the aircraft for availing the benefit of the Exemption Notification. The show cause notice mainly contested that the aircraft had not been used for the specified purpose but for private use and for promoting business.
