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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 ..... tioner. S/Shri Ashok Garg and Ankit Khushu, Advocates, for the Respondent. [Judgment per : A.K. Sikri, J. (Oral)]. These two appeals arise out of the common order dated16th December, 2008[2009 (237) E.L.T. 283 (Tri.-Del.).] passed by the Customs, Excise and Service Tax, Appellate Tribunal, New Delhi (CESTAT). M/s. AIR Travel Bureau Ltd., the respondents herein had imported 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained certificate of discharge of obligation from the DGFT against the foreign exchange earned through sale of tickets etc. 2. It is found as a matter of fact that the respondents are in the business of travel agency and the cars were utilized for the intended purposes i.e. they were added attraction for the foreign tourists to come to India and the respondents rendered the services 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the Revenue was that the export obligation should be fulfilled with the direct use of the imported items namely cars in the said case. Both the interpretations were not accepted, the Court took a balance of view by interpreting the EPCG policy in the following manner :- The true position appears to us to be that while capital goods may or may not be capable of 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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