TMI Blog2008 (8) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... use is not sufficient evidence – held that there is no violation of the requirement of the EPCG scheme - C/573/2005 - C/312/2008(PB), - Dated:- 12-8-2008 - Justice S.N. Jha, President and Shri M. Veeraiyan, Member (T) Shri L. B. Yadav, DR, for the Appellant. Shri S. K. Pahwa, Advocate, for the Respondent. [Order per : M. Veeraiyan, Member (T)]. - This is an appeal by the Department against the order of the Commissioner 122-R/2005 dated 12-5-2005. 2. Heard both sides. 3. The respondent runs a Hotel industry in Kanpur. They were issued EPCG licence applicable to hotel service sector; they imported three Mercedez Benz cars in 2001 totally valued about Rs. 1.1 crore and they were required to meet "export obligation" to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that even in respect of cars imported in the past when their export obligation discharge certificate has not been obtained as on 30-6-2008, the vehicles were required to be registered as tourist vehicle by 31-8-2008. 6. We have carefully considered the submissions from both sides. We have not been 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 'se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility provided by hotel to their guests. 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. The service provided has been given the freedom to use the imported cars in whatever way he considers best to earn the incremental foreign exchange. The cars have not been sold or in any way alienated to any othe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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