Page 187 - ELT_1st June 2020_VOL 372_Part 5th

2020 ] JOY’S THE BEACH RESORT PVT. LTD. v. COMMISSIONER OF CUSTOMS, CHENNAI 721

2020 (372) E.L.T. 721 (Tri. - Chennai)
IN THE CESTAT, SOUTH ZONAL BENCH, CHENNAI
[COURT NO. III]
Ms. Sulekha Beevi C.S., Member (J) and Shri C.J. Mathew, Member (T)
JOY’S THE BEACH RESORT PVT. LTD.
Versus
COMMISSIONER OF CUSTOMS, CHENNAI
Final Order Nos. 40106-40107/2020, dated 6-2-2020 in Appeal Nos. C/40486-
40487/2013-DB
Cars - EPCG Scheme for import of luxury cars - Conditions - Violation
thereof - Appellants although register the car imported as private vehicle ini-
tially but converted the registration to tourist vehicle much before issuance of
Export Obligation Discharge Certificate (EODC) - As long as foreign exchange
is earned by the hotel and imported car used for hotel purpose, there would be
no violation of any statutory requirement and it is not necessary that the for-
eign exchange has to be exclusively earned by using the vehicle - Therefore,
use by Directors or use other than ferrying tourists not breach of the condi-
tions of exemption - Appellant having been issued EODC on 12-6-2018 by the
Jt. DGFT, Trivandrum, department cannot proceed to recover the duty forgone
at the time of import, alleging non-fulfilment of conditions of EPCG license -
Demand not sustainable - Section 28 of Customs Act, 1962. [paras 8, 9, 10, 11]
Appeals allowed
CASES CITED
Commissioner v. Air Travel Bureau Ltd. — 2010 (260) E.L.T. 78 (Del.) — Relied on ........... [Paras 4, 9, 11]
Commissioner v. Hotel Excelsior Ltd. — 2016 (336) E.L.T. 595 (Del.) — Relied on .................. [Paras 9, 11]
Hotel Excelsior Ltd. v. Commissioner — 2016 (336) E.L.T. 116 (Tribunal) — Referred ................... [Para 4]
Narang International Hotels Pvt. Ltd. v. Commissioner
— 2017 (347) E.L.T. 680 (Tribunal) — Relied on ........................................................... [Paras 4, 10, 11]
DEPARTMENTAL CLARIFICATION CITED
D.G.F.T. Policy Circular No. 7/(RE-08)/2004-09, dated 7-5-2008 ................................................ [Paras 3, 7]
REPRESENTED BY : Shri Hari Radhakrishnan, Advocate, for the
Appellant.
Ms. T. Usha Devi, DC (AR), for the Respondent.
[Order per : Sulekha Beevi C.S., Member (J)]. - Brief facts are that the
appellants M/s. Joy’s The Beach Resort Pvt. Ltd. imported one Mercedez Benz
car vide Bill of Entry dated 10-2-2006 availing concessional rate of duty under
Notification No. 97/2004, dated 17-9-2004 using EPCG license dated 23-12-2005
issued by Jt. D.G.F.T., Trivandrum. On specific intelligence that the vehicle is
used in violation of the conditions stipulated in the license, investigations were
initiated. It was noticed that the vehicle was not registered as a tourist taxi and
was registered only as a private vehicle in the name of the Managing Director of
the appellant-company. The vehicle was initially seized and thereafter provision-
ally released on furnishing bank guarantee. Show Cause Notice was issued alleg-
ing violation of the conditions in the E.P.C.G. license and for recovery of duty
forgone along with interest and also for imposing penalty. After due process of
EXCISE LAW TIMES  1st June 2020  187