CESTAT in the case of Interglobe Aviation LTD. Versus Commissioner of Customs

Case Covered:

Interglobe Aviation LTD.

Versus

Commissioner of Customs

Facts of the Case:

All these 415 appeals have been filed by M/s Interglobe Aviation Limited. The issue raised in all these appeals is about the availability of Integrated Goods and Service Tax exemption provided at serial no. 2 in the General Exemption Notification No. 45/2017 dated June 30, 2017, as amended by Corrigendum Notification dated July 22, 2017, to aircraft and parts thereof that are re-imported into India after repairs.

The Appeals seek the quashing of the 415 orders passed by the Commissioner of Customs (Appeals) that uphold the orders of assessment of Bills of Entry, as a result of which all the appeals have been dismissed by the Commissioner (Appeals).

Observations:

The inevitable conclusion that follows from the aforesaid discussion is that the absence of mention of integrated tax and compensation cess in column (3) under serial no. 2 of the Exemption Notification would mean that only the basic customs duty on the fair cost of repair charges, freight, and insurance charges are payable and integrated tax and compensation cess are wholly exempted.

It would, therefore, not be necessary to examine the contention of learned Authorised Representative of the Department that in case of any ambiguity in an Exemption Notification, the benefit should go to the Revenue. It would also not be necessary to examine the remaining contentions advanced by the learned Counsel for the Appellant that the activity of repairs is “supply of service” or that the activity would not fall under the category of ‘import of service’ under the Integrated Tax Act since the necessary ingredients mentioned therein have not been fulfilled.

Decision:

Thus, for all the reasons stated above, it is not possible to sustain the impugned orders upholding the assessments made on the 415 Bills of Entry. The 415 orders passed by the Commissioner (Appeals) are, accordingly, set aside and it is held that the Appellant is entitled to exemption from payment of integrated tax under the Exemption Notification on re-import of repaired parts/aircraft into India. All the 415 Appeals are, therefore, allowed.

[Order pronounced in the open court]

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