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TMI Blog2010 (8) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... ted certain cars (two BMW cars) after obtaining EPCG license dated17th September, 2002. In view of the said license which was issued for the 'travel agency', the custom authorities charged duty @ 5% on the basic amount. However, it was subject to the condition that the respondents shall fulfill the export obligation of about Rs. 2.06 crores. It is not in dispute that the respondents' company has been able to fulfill the said obligation inasmuch as its claim has been accepted by the Director General Foreign Trade (DGFT) vide communication dated 18-3-2004. However, the custom authorities took the view that the cars were not used directly for earning foreign exchange and therefore, initiated proceedings for recovery of the normal custom duty a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices of arranging/booking air and train tickets, accommodation, site-seeing and booking train tickets etc. Without these services, rendered by the respondents, incremental foreign exchange earnings could not have been achieved. Another finding of fact which is recorded by the Tribunal is that it has not been shown before the Tribunal that the imported vehicles had been used for any purpose other than those related to travel and tour as stipulated in EPCG license. On this basis, the Tribunal opined that the term tour and travel is a very wide term and it cannot be said that the EPCG license envisaged only the amounts collected by use of imported cars to be accounted towards export obligation under the said license. 3. Thrust of the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... generating convertible foreign exchange by their independent use as is the position in the case of the lift in a hotel or the cars imported by the travel agent, the least that the importer must demonstrate is that the goods were put to use for the business activity for which the same were imported. The Scheme does not in our view envisage imports where the goods are not meant for use in the business activity of the importer nor can the goods be diverted for some other use without violating the conditions of actual user which is fundamental to the Scheme." 6. Once we apply this yardstick to the facts of the present case, the conclusion would be that the respondents have been able to fulfill the obligation under EPCG license as pointed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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