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2023 (1) TMI 1056 - AT - CustomsViolation of conditions of Exemption notification - ‘flying training' Aircraft - Allegation of misuse for ‘charter service’ - Confiscation of eight CESSNA 172R Aircrafts with redemption fine imposed - recovery of import duty forgone on the import of eight CESSNA Aircrafts import duty forgone on imports of spare parts for maintenance of the said aircrafts with interest - levy of penalty - acts of omission and commission - Jurisdiction of customs authorities to decide violation of the exemption notification. HELD THAT:- the appellant had initially imported Aircrafts for flying training purpose and had given such an undertaking to the customs authorities. The DGCA had also granted permits to the appellant. It is subsequently on 23.04.2009 that the appellant submitted an application before the MCA for grant of a No Objection Certificate to operate non-scheduled (charter) services, which certificate was granted by the MCA on 15.06.2009 and on 28.07.2009 an endorsement was made in the permit. The issue as to whether the customs authorities would have the jurisdiction to decide violation of the exemption notification was examined at length by a Larger Bench of the Tribunal in M/S VRL LOGISTICS LTD VERSUS COMMISSIONER OF CUSTOMS, AHMEDABAD [2022 (8) TMI 720 - CESTAT AHMEDABAD (LB)] where it was held that the jurisdictional authorities under the Civil Aviation Ministry that alone can monitor the compliance of the conditions imposed and the Customs Authorities can take action on the basis of the undertaking submitted by the importer only when the authority under the Civil Aviation Ministry holds that the conditions have been violated. It is not possible to accept the contention of the learned special counsel appearing for the Department that the decision of the Larger Bench of the Tribunal distinguishable on facts. The Larger Bench of the Tribunal in VRL Logistics had arrived at the conclusion after placing reliance upon the decision of the Supreme Court in Titan Medical Systems Pvt. Ltd. vs. Collector of Customs, New Delhi [2002 (11) TMI 108 - SUPREME COURT]. It has, therefore, to be held that the customs authorities could have proceeded to recover the duty on the basis of the undertaking only when the competent authority in the DGCA found as a fact that the appellant had violated the conditions of the permit - In the present case, such a finding has not been recorded and on the other hand, the permits have been renewed from time to time. Appeal allowed.
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