TMI Blog2011 (10) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... of contracts and the laws applicable to use of Motor Vehicles, which matter is not before this Tribunal. - Decided in favour of assessee. - C/169-170 of 2011 - C/453-454/2011(PB) - Dated:- 11-10-2011 - Shri Ashok Jindal, Shri Mathew John, JJ. Appearance: Appeared for Appellant : Shri S.K. Pahwa, Advocate Appeared for Respondent: Shri Sonal Bajaj, SDR Per Mathew John: The Appellants are running a travel agency. For the purpose of their business they imported five cars, of BMW make, under EPCG Licenses availing exemption under Notification 44/2002-Cus dated 19.4.2002. As per the condition in the notification and the Import Control Policy permitting import of such cars, the Appellants were required to achieve foreign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is the contention of the Appellants that a case booked on identical facts by the department was set aside by the Tribunal vide order in their own case reported at 2009 (237) ELT 283. They quote a few other decisions of the Tribunal and the decision of Delhi High Court in the case of Interglobe Enterprises Ltd Vs. UOI- 2006 (203) ELT 202 and argue that there is no requirement to demonstrate one to one correlation between service rendered using the cars and the foreign exchange realized by them. 4. Ld. Counsel for the Appellants points out that there is a decision of the Kerala High Court in similar matter reported as CC Vs. Kumarakam Lake Resorts - 2011 (268) ELT 153 (Ker.) where the Hon'ble High Court held that the Export Obligation Disch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso of a similar nature. The Appellants do not bill separately for the use of imported cars and therefore it is not possible to demonstrate foreign exchange realisation exclusively attributable to the use of the cars. He submits that there is no such requirement stipulated either in the custom notification providing exemption from customs duty or the Import Export Policy which allows free import of such cars. Therefore, his submission is that they have properly discharged the export obligation put on them and the demand confirmed by the impugned order is not maintainable. He fairly concedes that the cars were not registered as tourist vehicles as was the case in the case of Kumarakam Lake Resorts. But he takes us through the order of the Ke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of a hotel. Cars are an essential item for providing the service of travel agency. Revenue is arguing that foreign exchange earning should be generated by the 'exclusive' use of the cars. There is no such word seen in the Customs notification or Import Export Policy. The facts that the cars were not registered as a tourist vehicle and the Appellants did not bill for the use of car separately cannot be fatal for claiming the customs duty exemption, though there may be a slight irregularity in the matter which can be decided only if the matter is examined with reference to the terms of contracts and the laws applicable to use of Motor Vehicles, which matter is not before this Tribunal. Further once the matter has been decided by the juris ..... X X X X Extracts X X X X X X X X Extracts X X X X
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