Case Law Details
International Lease Finance Corporation Vs Union of India & Ors. (Delhi High Court)
Delhi High Court has held that non-commercial re-export of duty-paid goods would be entitled to drawback under Section 74 of the Customs Act and that requirement of Guaranteed Remittance was not necessary in a case where the exporter and owner of the goods were one and the same. The High Court in this case, Kingfisher Airlines was cannibalized and subsequently an aircraft engine was imported so that the aircraft chassis could be flown back, held that the petitioner was entitled to drawback on re-export of aircraft engine.
FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT
1. The petitioner in this proceedings claims direction to the Customs authority to pass appropriate orders on its duty drawback claim under Section 74 of Customs Act, 1962
2. The present petition is the third in this series of proceedings. Briefly, the petitioner who owns and leases aircrafts had entered into a transaction with M/S Kingfisher Airlines. Due to some default of the lessee, few aircrafts were detained by various Revenue Authorities including Customs Authorities, as a consequence of which, the engine of one of these aircrafts was removed (cannibalized).
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