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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 ..... able 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) services or non-scheduled (charter) services, the benefit of Notification No. 12/2012-Cus (Sr. No.453) is available. The purview of non-scheduled (passenger) services or non-scheduled (charter) services and the activities permitted by NSOP holder is specified by the Civil Aviation Requirements, 2010 dated 1.6.2010 („CAR'). Paragraph 2.5 of the CAR permits a non-scheduled operator to operate revenue charter flights for a company within its group companies, subsidiary companies, sister concern, associated companies, own employees, including chairman and members of the board of directors of the company an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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) services of the aircraft, for revenue; that the paragraph 2.5 and 2.6 of Civil Aviation Requirement (CAR) cannot be cited in this case as the notification is not covering such activity; that the provisions/concessions/facilities provided by the Directorate General of Civil Aviation (DGCA) cannot be invoked for the interpretation of the exemption notification issued under Section 25 (1) of the Customs Act, 1962. Revenue further adds that a provision, especially a fiscal statute providing for an exemption notification has to be interpreted in light of words employed by it and not on any other basis. A person who claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub- 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. Conditions 77. (i) the aircraft are 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 (ii) the importer furnishes an undertaking to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, at the time of importation that; a. the said aircraft shall be used only for providing non-scheduled(passenger) services or non-scheduled(charter) services, as the case may be; and b. he shall pay on demand, in the event of his failure to use the imported aircraft for the specified purpose, an amount equal to the duty payable on the said aircraft but for the exemption under this notification. Explanation.- 1. For the purposes of this entry,- (a) 'operator' means a person, organization, or enterprise engaged or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant 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. However, both these 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. In view of Explanation 2 to said notification, applicant may use the aircraft imported for providing non-scheduled (passenger) services or non-scheduled (charter) services. 9. Second issue raised by the Revenue is that an exemption notification has to be interpreted in light of words employed in the said notification and provision of CAR, especially paragraph 2.5 and 2.6 cannot be invoked to extend the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not cover such conditions; that public interest is always a guiding factor in exemption notification and applicant does not fall within the scope of the notification. 11. It is observed that the Central Govt. has power to grant exemption from duty of Customs under Section 25 (1) of the Customs Act, 1962, if satisfied that it is necessary in public interest to do so. It is noticed that subject Notification No. 12/2012-Cus has been issued by the Central Govt. in public interest. As discussed in earlier paragraphs, benefit of exemption notification has been extended to operators subject to fulfillment of conditions mentioned therein. Therefore, it is not correct on the part of the Revenue to state that the applicant does not fall within the scope of the notification. 12. It is to be observed that during the hearing before this Authority, following judgements on the Tribunal were mentioned before us; a) CC, New Delhi vs. Sameer Gehlot 2011(263) ELT 129 (Tri.-Del.) b) King Rotors & Air Charter (P) ltd vs. CC, Mumbai 2011 (269) ELT 343 (Tri-Mum) (c) Dove Airlines (P) Ltd. vs. CC (P), New Delhi, 2014 (313) ELT 292(Tri.-Del.) It is to be observed that these cases are related to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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