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1.3 In respect of all these proposed business activities 1 to 4, the applicant is claiming (i) exemption of basic custom duty as per the Custom Notification No. 21/2002 dated 1.3.2002 and (ii) exemption from additional customs duty (in lieu of excise duty) as per the Central Excise Notification No. 6/2006 dated 1.3.2006. The Department has taken the stand that the applicant is disentitled to invoke the benefit of the said notifications for the reasons stated by the Commissioner in his comments.

Question No. 2 (a). Reimport of engine modules necessary for undertaking repairs of aircraft engines relating to airline companies in India : Basic Customs duty exemption under Entry 346-D of Notfn No. 21/2002-Cus is available as engine repair directly contributes to the upkeep and maintenance of aircraft. The contention that none other than the aircraft operators can get the benefit of exemption is negatived.

Question 2(b) : Additional Customs duty is exempt for the same reasons give while discussing question 1(b) & 2(a) New Business No. 2 : Setting up an engine MRO shop in India for servicing the aircraft belonging to foreign airline companies operating scheduled air transport services and scheduled air cargo services outside India.

Question 3(b) : For the same reasons, the claim for additional Customs duty exemption is negatived.

New Business No. 3 : Import of aircraft components for providing a 'home-base service' to pre-identified airlines in India operating scheduled air transport service or scheduled air cargo service.

Question 4 (a) : Customs duty exemption is available for the reason that the activity of the applicant is in the nature of joint enterprise directly aimed at proper maintenance of aircraft, although the applicant itself does not undertake the job of fixing up/inserting the parts, which is done by the airlines themselves.

Question 4(b) : Additional Customs duty exemption is also available for the same reason.

New Business No. 4: Setting up a 'regional pool' in India for providing aircraft components to airlines.

Questions 5(a) & (b). As this activity is almost similar to Business No. 3 the exemption of basis and additional custom duty in available in respect of India airlines operating scheduled air transport service or scheduled air cargo service. The same is also the answer to Questions 6(a) and (b).

The answers to remaining Questions framed with reference to this business are against the applicant.