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TMI Blog2024 (6) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... nger) NSOP (Passenger). They also availed exemption under Notification No.21/2002- Cus dated 01.03.2002 (Sl.No.347B), as amended by Notification No.61/2007-Cus dated 03.05.2007. It is necessary to quote the relevant portion of the exemption notification as under : - No. Chapter or Heading or subheading Description of goods Standard rate Condition no. 347B 8802(except 8802 60 00 All goods NIL 104 Condition No. 104 : (i)....... (ii) the importer furnishes an undertaking to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the cases may be, at the time of importation that:- (a) the said aircraft shall be used only for providing non-scheduled (passenger) services or nonscheduled (charter) services, as the case may be, and Explanation:- for the purposes of this entry,-- (a)....... (b)'non-scheduled (passenger) services' means air transport services other than scheduled (passenger) air transport services as defined in Rule 3 of the Aircraft Rules, 1937. (c)'non-scheduled (charter) services' mean services provided by a 'non-scheduled (charter) air transport operator, for charter or hire of an aircraft to any person, wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mited Vs. Commissioner of Customs, Delhi 2023 (1) TMI 1056 - CESTAT New Delhi (v) M/s. Ligare Aviation Limited Vs. Commissioner of Customs (Preventive) 2023 SCC Online CESTAT 163 6. The relevant observations of the Larger Bench, particularly with reference to the nature of services relating to non-scheduled (Passenger) services or (Charter) services, necessary for the present case also are set out below:- "Non-scheduled (Passenger) operator can carry out charter service" "63. As noticed above, the definitions of air transport service and non-scheduled (passenger) service do not stipulate any restriction or impose a condition that such service should be rendered only on per-seat basis and not by chartering nor is there any stipulation in CAR 1999 issued by DGCA for grant of permits to operate nonscheduled air transport (passenger) services. In fact paragraph 9.2 of CAR 1999, which deals with nonscheduled air transport (passenger) services, categorically provides that a non-scheduled operator can conduct charter operations. 68. It is, therefore, clear that an operator providing non-scheduled (passenger) services can always provide such services either on individua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority under Ministry of Civil Aviation, namely Director General of Civil Aviation to mean that the appellants had not used the aircraft for non-schedule passenger service in terms of the permit issued by the said authority. 104. Under the Carriage by Air Act, 1972, the issuing of tickets is governed by the Second Schedule. Further, as per section 8 of the said Act, the Schedule will only be applicable to domestic carriage, once a notification is published applying the said provision to domestic carriage. In this regard, a notification dated 30.03.1973 was published in the Gazette, wherein Part I and II of Second Schedule dealing with the passenger tickets were not notified to apply to domestic carriage. Therefore, there is no requirement for issuing the tickets under the said Act for domestic carriage. In any event, in terms of paragraph 3 of the CAR 2000, no tickets are required to be sold for carrying out charter operations. 105. This apart, even if air tickets are not issued to the passenger, it may only lead to non fulfilment of the liability. The consequence is itself mentioned in Rule 3(2) to the Second Schedule. Thus, there cannot be any violation of the conditions, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rposes is permissible and has been upheld by the judicial pronouncements as noted above. 12. We may now deal with the decision cited by the learned Special Counsel for the Revenue in the case of M/s. East India Hotels Ltd., where the key question before the High Court was whether non-revenue flight operated by the companies for transporting its official would fall within the scope of providing non-scheduled (Passenger) service or nonscheduled charter service in terms of the notification in question. Referring to the Aircraft Rules, specially Rule 3(4) defining "Scheduled Air Transport Services" and Rule 3(9) defining "Air Transport Service", the Court observed as under:- "31. A plain reading of Rule 3(9) of the Air Craft Rules, indicates that the term 'air transport service' is defined in wide terms and would cover transport by air of humans, animals, mails or any other things, animate or inanimate. However, it is necessary that the said service be provided for 'remuneration'. The said definition also clarifies that the service may be for any kind of remuneration. However, for a service to fall within the meaning of 'air transport service' as defined in Rule 3(9) of the Aircra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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