Aircrafts for Flying Training Purposes or Non-scheduled Services exempted from payment of Custom Duty: Delhi HC dismisses Appeal [Read Order]

The Delhi High Court dismissed the appeal regarding the exemption from payment of customs duty for aircraft used for flying training purposes or non-scheduled services.

Mr. Anil Kathuria and Ms. Reena Grover counsel representing the petitioner, submitted that neither petitioner nor an authorized representative or counsel could appear on behalf of the petitioner on 03.05.2023, when the appeal was taken up for hearing, by the Custom Excise and Service Tax Appellate Tribunal ( CESTAT ) and the Tribunal in absence of the petitioner decided the appeal on merits without taking into account any of the grounds raised by the appellant in the appeal.

Responding to this, the counsel for the respondent, Mr. Kamal Kant Jha, who appeared on advance notice raises a preliminary objection with regard to maintainability of the present petition before the Court. He argued that the Tribunal had already decided the appeal on its merits, based on the classification of services provided by the petitioner, referencing a previous case.

In addition, the Tribunal relied upon M/s Chimes Aviation Pvt. Ltd. vs. Commissioner Service Tax, New Delhi-II, passed by Division Bench of this Tribunal, wherein same issue has already been decided.

The respondent further explained that the exemption from customs duty for this category of import or non-scheduled services aimed to address financial constraints for aircraft maintenance, aligning with exemptions for flying training purposes.

Additionally, the respondent’s counsel stated that if the petitioner wishes to pursue further remedies, they must approach the Supreme Court through an appeal under Section 35L of the Central Excise Act, 1944.

The coram of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja noted the petitioner’s request to withdraw the petition while reserving the right to pursue appropriate legal remedies. Accordingly, the Petition was dismissed as withdrawn, with all rights and contentions of the parties are reserved.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates