9911796707
TMI Blog2015 (8) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... correct –There can be no doubt that seats were integral part of aeroplane – Rule 3 (33C) and Rule 60 of Aircraft Rules, 1937, maintenance inter-alia include replacement, modifications, repairs and servicing – Thus, new seats that were being imported for servicing, repair or maintenance of aircraft – Decided in favour of Assesse. - Ruling No. AAR/Cus/06/2015 ,Application No. AAR/44/Cus/05/12 - - - Dated:- 24-7-2015 - V. S. Sirpurkar, Chairman And Shri S. S. Rana, Member ,JJ. For the applicant : Shri Lakshmi Kumaran, Adv For the Department : Shri G.K.Dixit (AR) RULING M/s Inter Globe Aviation Limited (hereinafter also referred to as applicant) is a Public Limited Company. They are inter-alia engaged in providing scheduled air transport service. Applicant submits that they intend to import seats of aircraft for replacing the existing seats; that existing seats are proposed to be replaced to provide a more comfortable flying experience to the fliers and to improve the fuel efficiency of the aircraft as the seats would be lighter in weight; that in this process, seats requiring repairing due to wear and tear shall also be replaced. Applicant further submits that f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 months. This Authority in Guthy Renker Marketing Pvt. Ltd., 2010 (261) ELT 737 (AAR) has ruled that eligibility to seek advance ruling should be the date of filing application. Therefore, we observe that activities subsequent to filing of this application, shall not make the applicant ineligible under Section 28 I (2) (a) of the Customs Act, 1962. 5. Further, it has been alleged by the Revenue that they came to know about application filed by the applicant and pending with this Authority, only when they sought clarification in respect of Bills of Entry filed. Applicant submits that vide letter dated 01.01.2013, they informed Assistant Commissioner of Customs (Import), Hyderabad i.e. concerned officer, about the same, whereas imports were made from 15.01.2013. This point has not been countered by the Revenue. Therefore, we are convinced that the applicant had informed the Revenue before affecting said imports. In view of above, we hold that activity of import of parts of aircraft for the purpose of servicing, repair or maintenance is a proposed activity. 6. The question on which advance ruling sought is as follows:- Whether the new seats that are being imported for replac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 'minor scheduled line maintenance', it allows such approved organizations to undertake replacement of passenger and cabin crew seats. 11. Applicant relied on the decision of New Holland Tractors (India) Pvt. Ltd. Vs CCE, Noida, [2010(253) ELT 249 (Tri.-Del.)], in support of their contention. Further, applicant submitted that Deputy Director of Airworthiness from Department of Civil Aviation has clarified vide letter dated 29.4.2013 that the seat would form part of the aircraft. 12. In response, Revenue submits that there is no doubt about the classification of 'Aircraft seats' under CTH 9401 10 00. Even the applicant has not disputed the same. The classification of 'Aircraft seats' under CTH 9401 10.00 is confirmed by the Hon'ble CEGAT, Special Bench 'D', New Delhi in the case of Indian Airlines vs. Collector of Customs [1988 (37) E.L.T. 420 (Tribunal)]. As such, 'Aircraft seats' cannot be considered as 'Spares / Parts' Aircrafts. Further, Revenue submits that the new seats are not meant for replacing damaged or unworkable seats but for up-gradation of the aircraft in order to make it more comfortable as an activity of ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15. Condition No. 75 of the Notification No. 12/2012 dated 17.03.2012 read with Notification No. 334/2012- TRU dated 23.03.2012, is reproduced as under; 75 If,- (i) Imported by an operator or on behalf of the operator, for operating scheduled air transport service or, scheduled air cargo service, and such aircraft is used for operating the scheduled air transport service or the scheduled air cargo service, as the case may be; or (ii) The said aircraft is not registered or not intended to be registered in India, and brought into India for the purpose of a flight to or across India, which is intended to be removed from India within fifteen days, or as extended by the competent authority in Ministry of Civil aviation, not exceeding sixty days, from the date of entry. Explanation.- For the purposes of this entry, (a) operator means a person, organization or enterprise engaged in or offering to engage in aircraft operation; (b) scheduled air transport service means an air transport service undertaken between the same two or more places and operated according to a published time table or with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are parts, and there are hundreds of thousands of different aeroplane parts, some made of rubber, which would have to go under the rubber headings, electrical parts which would go under the electrical heading and others which would go under the machinery heading, and so on and so forth. By not writing the chapter head into the notifications, the exemption become possible for all kinds of aeroplane parts described under these notifications. This Larger Bench judgment also negates the decision rendered by the Tribunal, on similar issue and relied upon by the Revenue. 18. Hon'ble Supreme Court in case of Collector of Customs, Bangalore vs. Maestro Motors Ltd. [2004 (174) ELT 289 (SC)] while deciding whether M/s Maruti Udyog Ltd is entitled to benefit of Notification No. 29/83 held that if according to language of notification, an item is specifically exempted then exemption would be available even though for the purposes of classification it may be considered to be something else, as is the case of the applicant. Relevant portion of said judgment is reproduced as under; It is settled law that to avail the benefit of a notification a party must comply with all the conditions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 802 contains Other aircrafts (For example, Helicopters, Aeroplanes), Spacecrafts (including Satellites) and suborbital and Spacecrafts Launch Vehicles. Applicant proposes to import seats of aircrafts, which is part of aircraft. Aircraft falls under Tariff item 8802 and its seats, which is also part of aircraft. It is to be noted that if the intention of the Govt. was not to extend benefit of said notification to seats of aircraft, it would have mentioned so in the notification, along-with rubber tubes, to which this benefit is not extended. To our mind, the approach of Revenue to apply General Rules for Interpretation for Import Tariff, even for interpretation of notification in this case, is legally incorrect. 20. The benefit of Notification No. 12/2012-Cus (S.No. 454) is available to parts (other than rubber tubes), of aircraft of heading 8802. There can be no doubt that seats are integral part of the aeroplane. This is also confirmed by the Department of Civil Aviation by clarifying that the seat would form part of the aircraft. Further, it is not possible for the airline to operate the flight without seats. Similarly, one cannot think of passengers travelling in aeroplane w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
