ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 06.05.2025
CESTAT New Delhi- Customs restrictive interpretation was incorrect, and no misrepresentation or suppression was proven
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, by order dated May 2, 2025, set aside the confiscation, duty demand, and penalties imposed via Order-in-Original dated 19.05.2010. The case centered on the import of a Bell 407 helicopter under exemption Notification No. 21/2002-Cus as amended by Notification No. 61/2007-Cus and the alleged misuse of the duty exemption granted under Condition No. 104.
Background of the Case:
- Importer: M/s. Sky Airways (a Division of G.S.I. Pvt. Ltd.)
- Aircraft Imported: Bell 407 Helicopter
- Date of Import: January 2008
- Declared Use: Non-Scheduled (Passenger) Services
- Exemption Claimed: Notification No. 21/2002-Cus (S.No. 347B) subject to Condition No. 104
The helicopter was imported for non-scheduled passenger services, and a statutory undertaking was provided that it would be used accordingly. However, the department alleged the aircraft was operated as a charter service, not a passenger service, by a third-party entity, violating the notification terms.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT New Delhi
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