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2020 (2) TMI 1358 - AT - CustomsEPCG Scheme - concessional rate of duty - vehicle has not been registered as tourist vehicle - recovery of duty forgone along with interest and penalty - HELD THAT:- It is brought out from the facts that the appellant has obtained registration under tourist category after the proceedings have been initiated - D.G.F.T. vide Circular dated 7-5-2008 has clarified that an importer/assessee could get the vehicles registered as tourist vehicle on or before 31-8-2008 and also if the EODC has not been issued within 30-6-2008. In the present case, the appellants have converted the registration to tourist vehicle much before issuance of EODC. The second allegation is that the appellants have not earned foreign exchange exclusively by the use of the imported vehicle - HELD THAT:- In the case of Commissioner of Customs v. Hotel Excelsior Ltd. - 2016 (336) E.L.T. 595 (Del.), the Hon’ble High Court of Delhi held that as long as foreign exchange is earned by the hotel and the imported cars are used for hotel purpose, there would be no violation of any statutory requirement and it is not necessary that the foreign exchange has to be exclusively earned by using the vehicle. The E.P.C.G. license does not envisage that the amount collected by use of the imported car only has to be accounted towards fulfilment of export obligation. In the present case, the appellant having been issued EODC on 12-6-2018 by the Jt. D.G.F.T., Trivandrum, the department cannot proceed to recover the duty forgone at the time of import, alleging non-fulfilment of conditions of EPCG license - Appeal allowed - decided in favor of appellant.
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