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TMI Blog2016 (9) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... is required to furnish undertaking to the Deputy/assistant Commissioner of Customs at the time of import to the effect that the aircraft shall be used only for providing non-scheduled (passenger) services or non-scheduled (charter) services, as the case may be. The conditions have to be read in conjunction with Explanation 2 to the notification, which clarifies that the use of such imported aircraft by a non-scheduled (passenger) operator for non-scheduled (charter) services or by a non-scheduled (charter) operator for non-scheduled (passenger) services, shall not be construed to be a violation of the conditions of import at concessional rate of duty. It is noticed from the application filed by the applicant at Annexure I that the applicant is proposing to import aircraft for providing non-scheduled (charter) services - applicant may use the aircraft imported for providing non-scheduled (passenger) services or non-scheduled (charter) services. Non-scheduled (charter) services are explained under Explanation 1 and one of the ingredients of non-scheduled (charter) services is that it should conform to CAR, which is issued under Rule 133A of the Aircraft Rules, 1937. Rule 133A of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted (hereinafter also referred to as applicant)t is a public limited company proposing to import aircraft for providing non-scheduled (charter) service. Applicant intends to charter the aircraft imported to related companies, primarily for use by the related company s top executives, directors, investors, promoters and their family members/friends, as revenue flights 2. Applicant submits that the benefit of Notification No. 12/12-Cus (Sr. No. 453) dated 17.03.2012 is subject to the Condition No. 77 prescribed in the Notification. As per Condition No. 77, the benefit of the Notification is available as long as; a. the aircraft is imported by an operator who has been granted approval by the competent authority in the Ministry of Civil Aviation to import aircraft for providing non-scheduled (passenger) services or non-scheduled (charter) services; and b. the importer gives an undertaking that the imported aircraft shall be used only for providing non-scheduled (passenger) services or non-scheduled (charter) services. Thus, as long as the importer is a NSOP (Non-Schedule Operator s Permit) holder and the imported aircraft is used for providing non-scheduled (passenger) service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its that as per the language of the Notification No. 12/2012-Cus, non-scheduled (passenger) services and non-scheduled (charter) services are two distinct and mutually exclusive categories of services, as is clear from the expressions only and as the case may be used in the above text; that it is settled law that an exemption notification has to be construed strictly and there has to be strict interpretation of the same by reading it literally; that the use of expression only and as the case may be in the exemption notification implies that to be eligible for the above Customs exemption notification, an operator having non-scheduled operator permit (passenger) shall provide non-scheduled (passenger) service only and similarly an operator having non-scheduled operator permit (charter) shall provide non-scheduled (charter) service only. Revenue further submits that the benefit of Customs notification can be given only in accordance with the wordings of the notification and the benefit of relevant notification is available for operator having license for non-scheduled passengers who carries out non-scheduled (passenger) services or operating being non-scheduled (charter) servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be said to be in the interest of the public. Public interest means greatest happiness of greatest number. As the public interest is always a guiding factor in exemption and as the applicant does not fall within the scope of the notification as explained above, the application made by M/s Prajesh Marketing for advance ruling may be rejected. 6. Notification No. 12/2012-Cus dated 17.03.2012 exempts all goods from basic Custom duty and additional duty as in excess of the amount specified as per table below, subject to conditions mentioned in column 6 of the said table. TABLE S.No Chapter or Heading or Sub- heading or tariff item Description of goods Standard rate Additional duty rate Condition No. (1) (2) (3) (4) (5) (6) 453 8802 (except 8802 60 00) All goods 2.5% - 77 Annexure Condition No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the company and their family members, provided it is operated for remuneration, whether such service consists of a single flight or series of flights over any period of time. 8. The issue raised by the Revenue is in respect of Condition No. 77 annexed to the Notification No. 12/2012-Cus. Condition No. 1 inter-alia prescribes that aircraft would be imported by the importer, who has been given approval by the Ministry of Civil Aviation for providing non-scheduled (passenger) services or non-scheduled (charter) services. Condition No. (ii) is regarding importer furnishing undertaking to the Customs authorities inter-alia to the effect that said aircraft shall be used only for providing non-scheduled (passenger) services or non-scheduled (charter) services, as the case may be. Therefore, both these conditions make it clear that approval of competent authority is required for import of aircraft for providing non-scheduled (passenger) services or non-scheduled (charter) services and importer is required to furnish undertaking to the Deputy/assistant Commissioner of Customs at the time of import to the effect that the aircraft shall be used only for providing non-scheduled (passenger ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompanies, sister concern, associated companies, own employees, including Chairman and members of the Board of Directors of the company and their family members, provided it is operated for remuneration. It is to be observed that CAR does not extend this facility to investors and friends. In view of the above, paragraph 2.5 of CAR issued in pursuance of Rule 133A of the Aircraft Rules, 1937 is regarding operation and use of aircraft and same is part of Explanation I (c) to Notification No. 12/2012-Cus. Therefore, the contention of Revenue that provisions of CAR 2.5 and 2.6 cannot be invoked to avail concessions/facility/ provisions, are not correct. It also noticed that the subject notification as well as contents of CAR does not debar the use of said aircraft for other than business purposes. In the absence of any such restriction, aircraft can be used for other than business purposes. 10. Final contention of Revenue is that the intended purpose of the aircraft to be imported is in the nature of personal use and not for public use; that exemption notification does not cover such conditions; that public interest is always a guiding factor in exemption notification and applicant d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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