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2011 (6) TMI 731 - AT - CustomsBenefit of N/N. 21/2002-Cus., dated 1-3-2002 and 6/2006-C.E. - import of aircraft - exemption from customs duty and CVD - denial on the ground that The aircraft was used substantially by the promoter companies of the appellant-company, such use of aircraft was for private purpose and that aircraft imported for private use was liable to duty - whether the aircraft is being used not in conformity with condition 104 of N/N. 21/2002-Cus. but is being used as a private aircraft when it is hired by the two companies holding shares of the appellant-company? Held that: - The fact that many persons availed of the services of the company is evidence that such audience were aware of the services being offered by the appellant-company. During the initial stage of any new business of providing service, such ventures can succeed only if there is an assured market for the service in question to reach break-even levels. Since the promoter companies were requiring the services of chartered aircrafts, they thought of setting up a company for providing such service and bringing in money and commitment by way of assured market. This cannot lead to a conclusion that the parent companies were not different from the appellant-company and the use of the aircraft by the parent company was private use of the aircraft. So we are not in agreement with the argument that the appellant-company was a colourable device contrived just to claim the customs exemption. We are unable to see any subterfuge in the matter either. There is also the fact that the Directorate General of Civil Aviation was being kept informed through periodic reports about the use to which the aircraft was being put to. The Ministry of Civil Aviation which was part of the decision making process for granting the exemption, did not find the above company to be not satisfying the conditions prescribed by them for import of the aircraft for Non-Scheduled (Charter) Services. Appeal allowed - decided in favor of appellant.
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