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TMI Blog2008 (9) TMI 356X X X X Extracts X X X X X X X X Extracts X X X X ..... K.S. Ravi Shankar and N. Anand, Advocates, for the Appellant. Ms. Sudha Koka, SDR, for the Respondent. [Order per : T.K. Jayaraman, Member (T)].- These appeals have been filed against the Order-in-Original No. 39/2007 dated 19-12-2007 passed by the Commissioner of Customs, Cochin. 2. Mr. K.S. Ravi Shankar and N. Anand the learned Advocates appeared on behalf of the appellants and Ms. Sudha Koka, the learned SDR, for the Revenue. 3. We heard both sides. 4. The appellants imported a Land Cruiser car under the EPCG scheme for the use of their hotel. In terms of the EPCG licence, they are required to fulfill the export obligations and earn foreign exchange by using the imported Land Cruiser V8 car. The Revenue proceeded against the appellants on the ground that they had violated the conditions of notification under which the vehicles are imported and also the EPCG licence conditions, as the said vehicle was not used for the purpose for which it was imported. The main contention of the Revenue is that foreign exchange should be earned by use of the car. There is absolutely no evidence that the car had been installed and the installation certificate was also not produced immediatel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a con tract carriage w.e.f. 30-1-2006. There is thus no violation of law. (d) The Ld. Respondent has not appreciated that in terms of the clarification issued by the DGFT dated 27-12-2006 (copy at page no. 203 of the appeal paper book) they had already fulfilled their export obligation as early as 31-3-2007. (e) The Ld. Respondent has not appreciated that the requirement to register the vehicle as a tourist vehicle came only w.e.f 07-05-2008, before which the appellant had already registered the vehicle as a tourist vehicle. (f) The Ld. Respondent has not appreciated that maintenance of log books or registers would apply only if the vehicle was registered as a tourist vehicle and during the relevant point of time maintenance of log books or log books was not mandated by the EXIM Policy. The appellant cannot be expected to fulfil non-existing conditions. (g) The Ld. Respondent did not appreciate that the cost of the car was "factored into the cost of packages of certain luxury rooms" and the vehicle was used for complimentary travel of the persons checking into such rooms. The order has not appreciated this critical aspect and the manner of reckoning the export obligation as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ist purpose only" [Add on page 648 of FTP & Handbook of Procedures Vol. 1, 2008- ED.J] Subject: Import of Motor Car etc. under EPCG Scheme-(para 5.1 of FTP) Attention is invited to Para 5.1 of Foreign Trade Policy wherein Import of Motor Cars, Sports Utility Vehicles/al purpose vehicles are allowed only to Hotels, Travel Agents, Tour Operators or Tour Transport Operators and Companies owning/operating Golf Resorts. 2. In order to ensure proper and intended use of above vehicles under EPCG Scheme, following course of action would be taken by EPCG authorization holder, Regional Authorities of DGFT and Customs Authorities in addition to existing conditions: a. Customs authorities will endorse in" Bill of Entry" while clearing such vehicles that such vehicles have to be registered as a vehicle "for tourist purpose only". This would make purpose of import of vehicles absolutely clear and would also facilitate registration. b. In all past cases where Export Obligation Discharge Certificate (EODC) has not been obtained by 30.06.2008 and where vehicles were not registered as Tourist Vehicles, EPCG authorization holders will get them registered as Tourist Vehicles, by 31-08-2008. Regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty to approach RTA concerned for seeking appropriate action to be taken by that authority on this score. 4. As regards 2nd issue at 2(ii) above, in the working of hotel, tourism and travel service industry the vehicles are part of an overall package drawn by these service providers for the tourists. This package may include hotel accommodation, food, beverages and travel cost and charges for utilizing imported vehicles would not be billed separately to the tourist. It is therefore not practically possible for these sectors to show export earnings separately from use of these vehicles. Therefore, the views expressed by the DRI on this score can not be accepted and all benefits including all earnings for providing hotel accommodation, sale of food and beverages apart from transportation of the tourist, should be considered towards discharge of export obligation against vehicles imported under EPCG scheme. This is however subject to the condition that no part of the sale proceeds have been paid in free foreign exchange to any other service provider for providing add on services for hotel accommodation etc. 5. These instructions may be followed scrupulously and wherever the EODC etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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