Case Law Details
Reliance Commercial Dealers Ltd Vs Commissioner of Customs (CESTAT Delhi)
Held that the undertaking to use the aircraft for non-scheduled (passenger) service can be said to have been violated only when the DGCA finds that the use of the aircraft is not in accordance with the permit granted and only in that event the Customs authority can demand duty in terms of undertaking
Facts-
The appeal is filed by M/s. Reliance Commercial Dealers Ltd. to assail the order passed by the Commissioner of Customs (Preventive), New Customs House, IGI Airport, New Delhi by which the aircraft has been confiscated under section 111(o) of the Customs Act 1962 with an option to the appellant to redeem the same after payment of redemption fine. The order also seeks to confirm the demand of duty in terms of the undertaking given by the appellant at the time of importation of the aircraft but since the aircraft was released provisionally, the bank grantee furnished at the time of provisional release of the aircraft has been directed to be invoked. The order also imposes of penalty upon the appellant under section 112(a) of the Customs Act. The duty demand made against M/s. Reliance Industries Limited has, however, been dropped.
Another appeal if filed by Sudhir Nayak, Vice-President of the appellant to assail the aforesaid order dated 31.08.2010 passed by the Commissioner to the extent it imposes a penalty of Rs. 20,000,00/- upon the said appellant under section 112(a) read with section 140 of the Customs Act.
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