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Ligare Aviation Ltd. Versus Principal Commissioner, Commissioner of Central Excise, Madurai

2016 (3) TMI 558 - CESTAT CHENNAI

Provisional release of aircraft - Seizure under Section 110 of the Customs Act, 1962 - Seeking relief from conditions imposed - Held that:- as the appellant possess a valid DGCA Licence for operating as Non Scheduled Passenger Aircraft and did not exported the aircraft for any other purpose which are re-imported but was sold the aircraft to the overseas buyer. Therefore, provisional release under Section 110 A of the Customs Act is allowed subject to execution of bond equivalent value of the goo .....

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The present appeal is filed by appellant M/s.Ligare Aviation ltd. against a letter O.S.No.60/2015-AIU dated 30.07.2015 issued by the Principal Commissioner, office of the Commissioner of Central Excise, Madurai. 2. The Ld. Advocate appearing on behalf of the applicant submits that the matter relates to seizure of aircraft at Madurai. He submits that the applicant had imported one aircraft VT-AVH Falcon 2000 into India vide Bill of Entry No. 268017 dated 19.01.2011 and it was provisionally asses .....

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d for provisional release and the Principal Commissioner vide his impugned order granted provisional release of the aircraft subject to a) to furnish a Bond of ₹ 128 Crores equal to the value of the seized aircraft and b) to furnish a bank guarantee of ₹ 25,89,44,000/-. Aggrieved by this order of the Ld. Principal Commissioner, the appellant is in appeal before this Tribunal 3. Heard both sides ShriParthasarathy, Ld. Advocate appearing for the appellant submits that the conditions to .....

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aircraft on lease by the appellant for a consideration. He further submits that for the purpose of financial arrangement and working capital of the company, aircraft was sold and again by entering into lease agreement, aircraft was leased out to appellant. The aircraft was flown to Colombo on 14.7.2014 and after completing the sale transaction, the aircraft returned to Madurai on 16.7.2014. He submits that aircraft was imported only in the year 2011 and cleared at NIL rate of duty. Therefore, i .....

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.No.453 of exemption notification 12/12 dt. 17.3.2012 as amended prescribes the effective rate of duty of 2.5% for the aircraft falling under 8802.Considering the original import value, the duty payable as per the above notification comes to only ₹ 3.20 crores. He also submits that they complied with condition No.77 of the above notification as they had a valid DGCA clearance certificate to operate Non-Scheduled (Passenger) services (NSOP). He submits that there is no violation or any cont .....

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A.R for Revenue opposed the appellants arguments and submits that the goods were seized for contravention of the provisions of the Act under valid mahazar was drawn under Section 110 of the Act as both export and import of the goods taken place without filing of shipping bill or Bill of Entry, either at the time of export or at the time of import and no documents whatsoever were produced. Therefore, taking into consideration the value of the aircraft i.e. ₹ 128 crores, the Principal Commi .....

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d illegally in violation of Sections 50 and 46 of the Customs Act and the said aircraft was handed over to the custody of the appellant by Supurdginama dt. 25/7/2015. Thereafter, appellant sought for release of the aircraft and the Principal Commissioner, Madurai in his order allowed provisional release on execution of bank guarantee of ₹ 25,89,44,000/-. 5. On perusal of sale and purchase agreement dt. 11.7.2014 we find the aircraft has been sold to overseas buyer INV-2Leasing Company Ltd. .....

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