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Hotel Excelsior Ltd., Jagdish Rai Sood, Director, Raman Kumar Sood, Director, Ajay Kumar Sood, Director, Satish Kumar Sood, Erstwhile Director Versus Commissioner of Customs (I And G) , New Delhi And Vica-Versa

Denial of the benefit of EPCG license - Import of cars - export obligations - cars were not put to proper use inasmuch as they were not used for providing transport facilities to the guests of the hotel to earn foreign exchange. - cars were insured as personal vehicles - cars were carrying the registration number in the incorrect colour code and different perceptions about the use to which the cars were put. The statements of drivers indicate that the cars were used by the Directors - benefit of .....

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oods under EPCG authorisation will have to change the character of service depending upon the goods imported which means that a hotel importing laundry equipment will have to render service of washing clothes of foreign tourists and earn foreign exchange in the process. Therefore, it cannot be construed that hotel importing cars will have to provide transportation to the foreign tourists and earn foreign exchange in the process. It only means the cars are to be used by HEL for providing hotel se .....

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y using the car by their Directors. It is not the case of the Revenue that these cars were not used by Directors who are ultimately managing the hotel. Therefore, in this case the cars have been indirectly used by HEL in providing hotel service to foreign guest. It is not the case of the department that the cars have not been put to such indirect or lateral use to discharge for export obligation. The custom notification does not provide for such indirect or lateral use of the capital goods impor .....

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goods like lift and chair do not envisage the use by foreign tourist, the car are to be used by foreign tourist, implying thereby that while other capital goods could be used indirectly or laterally, the cars could not be so used and were to be used by foreign tourists. - HEL has not obtained export obligation discharge certificate and the licences have not been redeemed and during the course of adjudication, HEL has been able to show that the cars in question have been used by the foreign tour .....

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e set aside. - Decided in favour of assessee. - Appeal Nos. C/378 to 382/2010-CU(DB) And C/589 And 591/2010, No. C/646/2010 - Final Order Nos. C/A/53455-53462/2015-CU(DB) - Dated:- 17-11-2015 - Ashok Jindal, Member (J) And R. K. Singh, Member (T) For the Appellants : Shri S K Pahwa, Adv. & Shri Rohan Pahwa, Advs For the Respondents : Shri B K Singh, Adv., Shri Gavit Chauhan, Adv. And Shri I C Joshi, Advs ORDER Per Ashok Jindal Hotel Excelssior Ltd. (HEL) and its Directors viz Shri Jagdish Ra .....

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Hotel Services under the category of Tourism and Travel related services" mentioned in Appendix 10 of the Handbook of Procedures relating to Foreign Trade Policy 2004-2009. M/s HEL obtained EPCG authorisation dated 20.08.2007 in respect three Mercedes Benz cars and another such authorisation dated 1.11.2007 in respect of one Rolls Royce car. The export obligation against this EPCG authorisation was to be fulfilled within eight years reckoned from the date of authorisation. HEL imported thre .....

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for providing transport facilities to the guests of the hotel to earn foreign exchange. (b) As the cars were parked at the residence of the Directors of HEL. (c) The cars were insured as personal vehicles. (d) The cars were carrying the registration number in the incorrect colour code and different perceptions about the use to which the cars were put. The statements of drivers indicate that the cars were used by the Directors. The matter was adjudicated, the adjudicating authority after followi .....

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international economic recession and terrorists attack on hotels in Mumbai, the flow of tourists to India was seriously affected and in the absence of high net worth tourists, the said luxury cars could not be used for transporting tourists, as there was no demand. However, the cars were otherwise being put to use in the hotel service. He submits that the case of the Revenue is that the cars are to be used to earn foreign exchange through the transportation provided to foreign tourists. This fac .....

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l goods to be fulfilled in eight years reckoned from issue of date of EPCG authorisation. The capital goods as defined in para 9.12 of the policy which means any plant, machinery, equipment or accessories required for rendering services and includes those required for replacement, modernisation, technological upgradation or expansion. The service providers includes providers of hotel services, can import any plant, machinery, equipment or accessories required for providing hotel services, as als .....

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ans, who may be either industrial or non-industrial and para 9.6 of the Policy, "actual user" means a person who utilise the imported goods for his own use in any service industry. Therefore, it means that cars imported by HEL were to be used by HEL in their service industry. He further submits that para 5.4(i) of the policy envisages fulfilment of export obligation by export of services rendered by HEL. It is further provided that export obligations can also be fulfilled by exports of .....

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ds imported. Therefore, it cannot construed that the hotel importing cars will have to provide transportation to the foreign tourists and earn foreign exchange in the process. It only means that cars are to be used for providing the hotel services to foreign guests. He further submits that the customs Notification No. 97/2004-Cus has been issued by the Central Government to operationalise the policy provisions. Therefore, the provisions in Foreign Trade Policy and the customs notification cannot .....

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the Foreign Trade Policy and export obligation means in relation to rendering service receiving payments in freely convertible foreign exchange for the service rendered through the use of capital goods. Therefore, the export obligation in relation to importers rendering service means receiving payments in freely convertible foreign exchange for the service rendered through the use of cars. This does not convey that the foreign exchange is to be earned by use of cars in transporting the guests of .....

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that cars are only to be used by foreign tourists staying as guests in the hotel is not in line with even the language of the notification. Therefore, there is no divergence between the provisions of the Foreign Trade Policy and the exemption notification. To support this contention he relied following decisions: (a) CC, New Delhi Vs. Som Dut Builders Ltd. - 2009 (236) ELT 478 (Tri.-Del.) (b) M Far Hotels Ltd. Vs. CC, Cochin - 2009 (241) ELT 94 (Tri.-Bang.) (c) Air Travel Bureau Ltd. Vs. CC, New .....

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uestion were maintained differently from the logbooks of other cars or the control of these cars was with Directors while the control of other cars was with the staff or the cars were being used by the family members of the Directors. With regard to this, he submits that it is not the case of the department that cars were not used by the Directors for the purpose of the hotel. In fact, these cars are parked in the hotel with the proper number plate from April 2009. This fact was brought to the n .....

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by the hotel and it is an accepted position that cars were not so used at all. He further submits that case laws relied upon by the ld. Counsel for the appellant HEL and its Directors cannot be treated as an authority as the decision has not considered the provisions of customs notification inasmuch as there was no analysis of the customs notification in those decisions. He further submits that the decision of the Hon'ble Delhi High Court in the case of Interglobe Enterprises Ltd. - 2006 (20 .....

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T authorities that the cars will be used for providing the service to the foreign guests and that HEL had applied for obtaining export obligation discharge certificate, in view of their fraudulent intentions, the action of the department is not premature. 6. In rebuttal to the argument advanced by ld. Counsel for Revenue, Shri S.K. Pahwa submits that the arguments of Revenue are untenable as it is not the case of HEL that the department has to be guided by the provisions of Foreign Trade Policy .....

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the export obligation by itself nor when read in conjunction with the proviso relating to managed hotels suggested that the Government of India intended any divergence in Foreign Trade Policy and the customs notification in regard to the matter in issue. Therefore, the Policy and the customs notification, allow import of cars by hotels for use in providing service. In fact, custom notification does not provide how to use capital goods imported under EPCG scheme and it is not the case of Revenue .....

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rger Bench decision is not correct as in Larger Bench proceedings;there is a collective application of mind by three Members on an issue which is referred to the Larger Bench whereas in the case of difference of opinion matter, the third Member has to choose between one of the two opinions of the differing Members. This issue has been examined by the Hon'ble Gujarat High Court in the case of Commissioner Income Tax Vs. Vallabbdas Vithaldas - 2015-TIOL-1314-HC-AHM-IT. Therefore, the decision .....

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ered the submissions. 8. The facts of the case are not in dispute, therefore, the same are not required to be recorded herein. 9. After analysing all arguments advanced before us, the following issues emerges: a) Whether, the proceedings initiated against HEL and its Directors for contravention of import under Notification No. 97/2004 ibid is premature or not? b) Whether, the imported cars were required by the HEL to be used for transportation of foreign tourist to earn foreign exchange or not? .....

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orts subject to condition that: (i) total foreign exchange, earning from hotel, travel and tourism and gold tourism sectors in current and preceding three licensing years is ₹ 1.5 crores or more. (ii) "duty saved" amount on all EPCG Authorisations issued in a licensing year for import of motor cars, sports utility vehicles/all purpose vehicles shall not exceed 50% of average foreign exchange earnings from hotel, travel and tourism and golf tourism sectors in preceding three licen .....

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export of goods, manufactured/services rendered by the applicant. Export obligation shall be, over and above, the average level of exports achieved by applicant in preceding three licensing years. Such average would be the arithmetic mean of export performance in last 3 years. Export obligation may also be fulfilled by exports of group company/managed hotel which has EPCG Authorisation. However, in such cases, additional export obligation imposed shall be over and above average exports achieved .....

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ans a person who utilises the imported goods for his own use in (i) any commercial establishment carrying on any business, trade or profession ; or (ii) any laboratory, Scientific or Research and Development (R&D) institution, university or other educational institution or hospital; or (iii) Any service industry." 9.36 "Managed Hotel" means hotels managed by a three star or above hotel/hotel chain under an operating management contract for a duration of at least three years be .....

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porters rendering services means receiving payments in freely convertible foreign agency for services rendered through the use of capital goods. Provided also that in respect for hotels the export obligation many also be fulfilled by Managed Hotels as defined in paragraph 9.36 of the Foreign Trade Policy." On going through the above provisions, we find that para 5.4(i) of the Policy envisages fulfilment of export obligation by export of services rendered by HEL. It also provided that export .....

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o the hotels. Condition for import of such capital goods in para 5.3 of the Policy is that import of cars shall be subject to actual user condition till export obligation is completed and para 9.4/9.6 means actual user a person who utilises imported goods for his own use in any service industry. Therefore, the said conditions clearly stipulates that the car imported by HEL were to be used by HEL in their service industry. We further find that para 5.15 of Handbook of Procedure mandates that ever .....

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tourists and earn foreign exchange in the process. Therefore, it cannot be construed that hotel importing cars will have to provide transportation to the foreign tourists and earn foreign exchange in the process. It only means the cars are to be used by HEL for providing hotel services to foreign guests. The custom notification in question has been issued by the Central Government to operationalise the Policy provisions. Therefore, the provisions in Foreign Trade Policy and the custom notificati .....

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ls, a view that notification is a nature of complementing the Policy can be taken. Therefore, the term capital goods for the purpose of notification in question has the same meaning as assigned to it in the Foreign Trade Policy. The export obligation means in relation to importers rendering services receiving payments in freely convertible foreign exchange for the services rendered through the use of capital goods. Therefore, the export obligation in relation to HEL rendering hotel services mean .....

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rets the actual user concept in the definition of export obligation. The Notification does not suggest that export obligation is to be discharged by earning foreign exchange through the use of car by foreign tourist as it is provided in the notification itself that in respect of hotel, export obligation can be fulfilled by "Managed Hotel" as defined in paragraph 9.36 of the Foreign Trade Policy. The "Managed Hotel" means hotel provided by a three star or above hotel/hotel cha .....

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n. It further says there is no divergence between the provisions of Foreign Trade Policy and exemption notification. 10. We also note that the appellants do not suggest that the department has to follow only the provisions of Foreign Trade Policy but the department on the same time has no jurisdiction to administer the provisions of customs notification. Therefore, the provisions of Policy and the notification are to be viewed harmoniously and in a case where harmonious interpretation is availab .....

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hotels for use in providing hotel services. 11. Both policy and custom notification does not specify how a car or in which manner a car is required to be used by the hotel. The Hotel can possibly use the car in the following manner: (a) The car can be used for providing transportation facilities to foreign guests on complementary basis. (b) The car can be used for transportation facility to the foreign guests on payment basis in foreign exchange. (c) The cars can be used as marketing tool in the .....

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irectors who are ultimately managing the hotel. Therefore, in this case the cars have been indirectly used by HEL in providing hotel service to foreign guest. It is not the case of the department that the cars have not been put to such indirect or lateral use to discharge for export obligation. The custom notification does not provide for such indirect or lateral use of the capital goods imported under EPCG scheme. It was also not the case of the department the provisions of foreign trade policy .....

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ice rendered through the use of capital goods. Therefore, if the cars were used directly or indirectly for providing the hotel services from which the foreign exchange is earned, the conditions no where suggest that the nature of service to be provided by the importer or to be governed by the type of capital goods provided. As in the case of other goods like lift and chair do not envisage the use by foreign tourist, the car are to be used by foreign tourist, implying thereby that while other cap .....

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ment about the use of the goods that will decide the interpretation of law and thus introduces an element of arbitrariness. 12. The argument advanced by the ld. Special Counsel for the Revenue that the case laws relied upon by the ld. Counsel for HEL and its Directors have not examined the provisions of exemption notifications, therefore, the same cannot be relied. We do not agree with the ld. Special Counsel of the Revenue to argue this. In fact in any decision, it is only contentious points wi .....

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were not substantially in a position to use the cars linearly for earning foreign exchange while providing their respective services. In this backdrop, it was no possible that the Tribunal or the High Court would have concluded the issue without considering the legal provisions at the relevant time, in fact that the term export obligation as used in the relevant notification were not analysed only shows that the department did not find anything in the said definition to controvert the case of t .....

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ivate name in violation of the policy whereas the car was required to be registered as tourist vehicle. Therefore, the facts of the said case are distinguishable from the facts of the case in hand as in this case, the cars were registered in the name of HEL as 'tourist vehicle' not during the investigation but thereafter also. The ld. Counsel has relied only to the ratio in that case to say that export obligation means receiving payments in freely convertible foreign exchange for service .....

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earned by the use of imported car. In those set of facts, this Tribunal arrived at a decision that the foreign exchange earning out of the service rendered without the use of capital goods would not found part of discharge of export obligation. Definitely this is not the case in hand. In the case of Surya Samudra Holiday Resorts Pvt. Ltd. (supra) also the Tribunal had not analysed how and in which manner car is required to be used by importers, the car was already transferred in private name. As .....

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law relied upon by ld. Counsel for the Revenue is of no help. Further, we find that in the case of Interglobe Enterprises Ltd. (supra) the writ petition was filed by the petitioner for setting aside the investigation proceedings against them with regard to discharge of export obligation and the Hon'ble High Court observed that the car in question was not registered as a commercial vehicle and thereafter investigation can be conducted on said case. Admittedly, same is not in the case in hand .....

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shown any violation of any specific provision of EXIM Policy and the EPCG licence or violation of any specific condition of the exemption notification governing the imports of car for the service sector. The relevant portion of the Commissioner's finding dropping the proceedings are reproduced below:- "25. The principal allegations of the Department are that the importer had stated that the purpose of the import of these cars would be 'service to be provided to hotel, foreign guest .....

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rity under Motor Vehicle Act and not for commercial use. 26. Neither the Import Policy nor the Customs Notfn. 49/2000-Cus. dated 27-4-2000 lay down the nature of record to be maintained by the licensee in respect of foreign exchange earned from the imported capital goods. It is nowhere provided that details of each journey undertaken or name of foreign guest who used the car or the amount and mode of payment should be recorded. The only requirements are that the required incremental foreign exch .....

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ests. In the nature of the hotel industry a major part of their marketing strategy is to interact with major tour group operators who provide bulk business and such interaction is at the convenience of the tour operator and not the hotel which is the buyer. 27. The importers are required to use imported cars for earning incremental foreign exchange as required under EPCG scheme. The Customs Notfn. or the Export Import Policy do not prescribe the nature of record to be maintained by the importer. .....

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quirement of the EPCG scheme or the Customs notification. The show cause notice is dropped". 15. Further in the case of M Far Hotels Ltd. (supra) wherein the facts are as under. The appellant violated the conditions notification under which vehicle was imported and also EPCG licence as the said vehicle was not used for the purpose of which it was imported. The main contention of the Revenue is that foreign exchange should be earned by use of the car. In that case this Tribunal has observed .....

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eme should be registered as vehicle for tourist purpose only. The said circular is reproduced below: Vehicles imported under EPCG Scheme to be registered as vehicle for "tourist purpose only" [Add on page 648 of FTP & Handbook of Procedures Vol. 1, 2008-ED.J] Subject: Import of Motor Car etc. under EPCG Scheme-(para 5.1 of FTP) Attention is invited to Para 5.1 of Foreign Trade Policy wherein import of Motor Cars, Sports Utility Vehicles/al purpose vehicles are allowed only to Hotel .....

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uot;for tourist purpose only". This would make purpose of import of vehicles absolutely clear and would also facilitate registration. b. in all past cases where Export Obligation Discharge Certificate (EODC) has not been obtained by 30.06.2008 and where vehicles were not registered as Tourist Vehicles, EPCG authorization holders will get them registered as Tourist Vehicles, by 31-08-2008. Regional Authorities of DGFT will monitor and ensure compliance. 3. This issues with the approval of DG .....

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[Kind Attn. Shri M. Balagangadharan, Joint DGFT] Subject: Import of Cars under EPCG Scheme - reg. Sir, Please refer to your letter No. 7/21/EPCG.MISC.Statement/06 dated 3-11-2006 with regard to the DRI communication under their reference No. S/IV/43/2005/661, dated 4-7-2006 received in that officer 2. The matter has been examined in detail. In their communication DRI has raised two Issues:- i. The cars imported under the erstwhile policy registered in individual name should first be got registe .....

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the Foreign Trade Policy 2004-09. Prior to this date, there was no such stipulation in the Foreign Trade Policy. Therefore, foreign exchange earnings by use of these vehicles not registered as Commercial/Tourist vehicles cannot be denied the benefits of considering the same towards fulfillment/discharge of EO, so long as no other misuse/transfer of such a vehicle/registration of such vehicle in the name other than the licence holder is reported. As regards the mandatory registration of these ve .....

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e vehicles are part of an overall package drawn by these service providers for the tourists. This package may include hotel accommodation, food, beverages and travel cost and charges for utilizing imported vehicles would not be billed separately to the tourist. It is therefore not practically possible for these sectors to show export earnings separately from use of these vehicles. Therefore, the views expressed by the DRI on this score can not be accepted and all benefits including all earnings .....

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cancelled based upon the recommendations of DRI or any other authority, the same may be reviewed and dealt with in line with the instructions contained in this letter. However, wherever there is a specific order from any court of law in this regard, the same may be brought to the notice of the Headquarters. 6. This issues with the approval of Competent Authority. 11. On going through that letter it is seen that the DRI requested the DGFT to issue clarification saying that export earnings through .....

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lear that it is not very necessary that the appellants have to show the amount of foreign exchange earned because of the exclusive use of the car, due to practical difficulties. The appellants also have stated that in many cases, they may allow the use of the vehicle as complement to Tourists. In those cases, they may not be billing them separately. And it would be very difficult and there wilt be practical difficulties in showing the earnings which are done exclusively through the use of the ca .....

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ar directing vehicles to be used for tourist purpose has been issued on 07-05-2008. On going through the DGFT circular as well as the clarification given which we had already reproduced, it is seen that in these matters a broader view has to be adopted. Moreover, there is time for fulfillment of export obligation up to 2011. It is also very premature on the part of the Customs to have demanded duty from the appellants. The appellants have applied for the EODC certificate and if the DGFT authorit .....

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e appeals with consequential relief." Admittedly, the case of the Revenue is similar that the foreign exchange should be earned by use of car. Therefore, the facts of the cases before us are similar to the case of M Far Hotels Ltd. (supra). 16. We further observed that in the case of Air Travel Bureau Ltd. (supra) the cars were confiscated for violation of notification as well as conditions of EPCG license. As the cars importer were required to be used for intended purpose wherein this Trib .....

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ention of the learned DR that the Customs authorities are empowered to look into the compliance of the conditions of the notification independently. However we, in the present case, find that the notification has a link to provisions of the EXIM policy and the understanding of the DGFT authorities on the said provisions cannot be brushed aside without valid reasons. 6.5 Further, we have not been shown that the imported vehicles have been used for any purpose other than those related to travel an .....

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unt for the purpose of computing the export obligation is a debatable point. The export obligation as per the EXIM policy refers to one which is fulfilled using the goods imported. However, a submission was made that the value of export earnings from the date of import of cars are also substantially higher and the same fully covers the export obligation as stipulated under EXIM Policy/EPCG licence. It is also submitted that the said cars are still being used for the purpose for which they have b .....

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e said case. Both the interpretations were not accepted, the Court took a balance of view by interpreting the EPCG policy in the following manner:- 'The true position appears to us to be that while capital goods may or may not be capable of generating convertible foreign exchange by their independent use as is the position in the case of the lift in a hotel or the cars imported by the travel agent, the least that the importer must demonstrate is that the goods were put to use for the busines .....

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which was the very condition imposed in the said license by the DGFT. DGFT has redeemed the license and has taken the view that the respondents have fulfilled their export obligation. No doubt, the opinion of the DGFT would not be conclusive and any such certificate cannot press the power of the authority to reopen even a concluded matter if it is shown that the such conclusion was vitiated by fraud concealment of facts or misrepresentation or misdeclaration as held by the Apex Court in Sheshan .....

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e Apex Court reported in 2011 (268) ELT A110 (SC). 17. We also note that the identical issue came up before the Bombay Bench of this Tribunal in the case of Goldfinch Hotels (P) Ltd., (supra) wherein the case of the Revenue was that the appellant had no intention to abide by the conditions of EPCG licence and Exemption notification. Therefore exemption was wrongly availed and show cause notice was issued. In that case after analysing the decision of Interglobe Enterprises (supra) and Surya Samud .....

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or the amount and mode of payment should be recorded. The service provider has been given the freedom to use the imported capital goods in whatever way he considers best to earn the incremental foreign exchange. The main requirement are that the required incremental foreign exchange be earned in a specified period; the imported vehicle shall be registered for tourist purpose only, and should not be sold or transferred. The Department has not produced any tangible evidence to prove that the actua .....

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otel. In these circumstances, we find that even if the mandatory conditions of Exemption Notification are construed strictly, there is no violation of any condition of the EPCG license, FTP or the Customs Notification. 27. We have also perused the judgement of this Tribunal in Surya Samudra Holiday Resorts (P) Ltd. - 2010 (256) ELT 433 (Tri.-Mum). The said judgement was rendered in a totally different context, inasmuch as there was violation of the actual user condition and the main issue was wh .....

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ng Director of the appellant therein from earlier registration in Trivandrum as a tourist vehicle. In view of the above findings, this judgement is not applicable in the facts of the instant case. 28. The appellant has also raised the issue of erroneous rejection of the request for mandatory examination of witnesses as prescribed under section 138B of the Customs Act, 1962 on the issue of the relevancy of statements in the adjudication proceedings. However, in view of the above findings we find .....

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Forum: Excise duty credit on finished stock at additional place of business.

Forum: Input tax credit

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

Forum: GST on Notional rent

Forum: GST ON SALES PROMOTION

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 comments and suggestions-reg.

Highlight: Genuineness of labour wages expenses, embroidery charges, fabrication expenses etc. - getting work done through small workmen who do not have any permanent place of residence - disallowance of ad hoc expenditure deleted.

Highlight: Project import - Since the goods were never used for the purpose for which it was imported, the actual user condition has been violated - Redemption fine and penalty imposed.

Highlight: Penalty u/s 112 (a) - CHA - Lack of due diligence and failure to take more precautions can not, by itself, bring in penal consequences

Highlight: Import of services - GST - The fact that those services were received outside India will not change the fact that the services have been paid for by the beneficiary appellant, who is located in India. - Demand confirmed.

Notification: SEZ for IT/ITES at Madhurwada Village, Visakhapatnam District in the State of Andhra Pradesh - denotified.

Highlight: Merely because payment is received in Indian rupee, it cannot be said that payment against export has not been received in convertible foreign exchange.

Highlight: Merely vehicle numbers was not mentioned on the invoices cannot be the reason to deny Cenvat Credit

Highlight: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017 - Circular

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017

News: Auction for Sale (Re-issue) of Government Stocks

Article: TDS APPLICABILITY ON GOVERNMENT CONTRACTS UNDER GST (Under Section 51 of the CGST Act, 2017)

News: Manmohan takes potshots at note ban, 'hasty' rollout of GST

News: GST on petrol, diesel requires wider discussion: Nitish

Article: WHEN CAN ONE TAKE ITC FOR RCM CASES?

Notification: TDS liability under Section 51 of CGST, 2017 come into force w.e.f. 18-9-2017 - Persons liable to deduct TDS from payment made or credited to the supplier of taxable goods or services specified

Notification: Central Goods and Services Tax (Seventh Amendment) Rules, 2017

Notification: Seeks to extend the last date for filing the return in FORM GSTR-3B for the months of August to December, 2017

Circular: Filing of Special Leave Petition against Orders of Hon'ble High Courts staying Collection of Tax under GST- reg.

Highlight: Exemption u/s 54F - LTCCG - once entire net consideration is invested, the absence of completion certificate cannot be a ground to deny the benefit of deduction.



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