Case Law Details
Commissioner of Customs Vs Joy’s the Beach Resort Pvt Ltd (CESTAT Chennai)
CESTAT Chennai held that once the licencing authority has found that the licencing conditions have been fulfilled, it would not be open to the customs authorities too contend that the imports under the licence are contrary to law.
Facts- The respondent filed bill of entry for import of capital goods namely, ‘Nissan X Trail Car’ under the EPCG scheme availing benefit of exemption under the Notification no.55/2003.
After importing the vehicle, the appellant had registered the vehicle as private vehicle in the first instance and re-registered the same as a tourist vehicle at the instructions of JDGFT. The entire earnings of foreign exchange of USD 116,609.17 was from travel agent / tour operators and USD 142,403.76 was earned from credit card collection which was shown by respondents towards export obligation fulfillment of the imported car.
The department was of the view that the respondent had violated the condition of the notification in as much as the car was not registered as tourist vehicle for a substantial period and also that the foreign exchange was received from various other services and not by use of the car. The respondents did not maintain proper vehicle movement records and the vehicle travel journey documents showed only very less amount collected from using the vehicle for travel purpose.
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