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TMI Blog2024 (5) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... nd for storage of imported goods such as spare parts of aero engines, consumables and chemicals for cleaning the engine, without payment of duty. The appellant imported aircraft parts meant for repair / overhaul of aircraft engines received from abroad and bonded these aircraft parts in their bonded warehouse without payment of duty and subsequently, cleared them under ex-bond Bills of Entry to be used in repair / overhaul of the aero engines claiming the benefit of 'Nil' rate of duty vide Notification No.153 / 1994-Cus. dated 13.07.1994. In terms of this Notification, the appellant could import goods of foreign origin for repairs and export. The Original Authority denied the benefit of the above Notification for spare parts cleared from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also 'spare parts' required for undertaking repair / overhauling of the aircraft engines are eligible for the benefit of the Notification. The Notification only states that articles of foreign origin is exempted from payment of duties of customs subject to condition that the importer makes a declaration at the time of import that the said goods are being imported for repairs and return. The expression 'for repair and return' would encompass not only goods which require repair but also spare parts or components which are essential and required for doing repairs. Accordingly, the benefit of Notification to the spare parts admittedly used in the engines which are exported cannot be denied. It is also submitted that initially they were advised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 01.03.2002 read with Sl. No.347 on submission of Green Bill of Entry and utilize the parts required for repair / overhauling of engines received from overseas customers which are cleared under Notification No.153/1994 dated 13.07.1994. Hence, the learned AR submits that it was on the appellant's request that Section 65 bond was not given and later on, it was added as per the request of the appellant when the benefit of the Notification No.153/1994 dated 13.07.1994 was denied. Similarly, the question of benefit of Notification No.134/1994 claimed before the Commissioner (A) was also not eligible since during the relevant period, the appellant did not comply with the provisions of Section 65 of the Customs Act, 1962. The Commissioner (A) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid down in the corresponding entry in column (3) thereof. S. No. Description of goods Conditions (1) (2) (3) 1. Articles of foreign origin (i) The importer makes a declaration at the time of import that the said goods are being imported for repairs and return; (ii) the said goods are re-exported within six months of the date of importation or within such extended period not exceeding one year, as the Assistant Collector of Customs may allow; (iii) the Assistant Collector of Customs is satisfied as regards the identity of the said goods; and (iv) the importer executes a bond undertaking- (a) to re-export the said goods after repairs within six months of the date of importation or within the aforesaid extended period; (b) to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irs cannot be inferred from the said Notification. 4.1 The relevant portion Notification of No.21/2002-Cus. dated 01.03.2002 is reproduced herein below: Effective rates of basic and additional duty for specified goods falling under chapters 1 to 99 In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 17/2001-Customs, dated the 1st March, 2001 [G.S.R. 116(E), dated the 1st March, 2001], the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of the description specified in column (3) of the Table belo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ors of aircraft (excluding rubber tyres and tubes for aeroplanes or gliders) Nil Nil 67 67. If the parts are required for manufacture or servicing of aeroplanes, gliders, helicopters or simulators of aircraft. Explanation.- "Parts of aeroplanes, gliders, helicopters or simulators of aircraft" shall include engines, engine parts, wireless transmission apparatus, wireless receivers, iron and steel washers and screws, ball and roller bearings and other parts. As seen from the above Notification, the spare parts imported for repair/replacement of the engines were otherwise also exempted even if they were cleared for home consumption; hence, the question of demanding duty does not arise. In the instant case, admittedly, the goods were bo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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