Concessional fuel duty for domestic extension flights applies where circulars preserve foreign-going aircraft status and the legal issue is raised later.

Concessional central excise duty on aviation turbine fuel was held available for a domestic extension flight operating between two Indian airports where the governing circular extended the benefit and a mere change in flight number or IGM number did not alter eligibility. The flight was treated as part of an international service with connecting passengers, and the earlier decision in the assessee's own case, affirmed by the Supreme Court, supported the entitlement. A pure question of law on statutory benefit could also be raised before the Tribunal even if not urged before the first appellate authority. The duty, interest and penalty demand was therefore unsustainable.

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Issues: (i) Whether aviation turbine fuel supplied to a domestic extension flight operating between two Indian airports was entitled to concessional central excise duty as fuel for a foreign going aircraft. (ii) Whether the entitlement to the notification benefit could be examined by the Tribunal even though the point had not been urged before the first appellate authority.

Issue (i): Whether aviation turbine fuel supplied to a domestic extension flight operating between two Indian airports was entitled to concessional central excise duty as fuel for a foreign going aircraft.

Analysis: The applicable board circular clarified that the benefit was available to domestic extension flights plying between two Indian airports without a trip to a foreign airport on their voyage, and that a mere change in flight number or IGM number did not by itself make the aircraft ineligible for duty-free or concessional supply. The flight in question was also shown to be an international service with connecting passengers, and the issue had already been settled in the appellant's own case, which had been affirmed by the Supreme Court. The demand could not survive in the face of the circular and the binding earlier decision.

Conclusion: The concessional duty benefit was available and the demand of duty, interest and penalty was not sustainable.

Issue (ii): Whether the entitlement to the notification benefit could be examined by the Tribunal even though the point had not been urged before the first appellate authority.

Analysis: A pure question of law, particularly one concerning the availability of a statutory benefit, can be raised before the Tribunal even if it was not pressed earlier. The objection that the point was unavailable at the appellate stage was therefore untenable.

Conclusion: The Tribunal could examine the question of entitlement notwithstanding its absence before the first appellate authority.

Final Conclusion: The assessee was held entitled to the concessional benefit, and the duty demand, interest, and penalty could not be sustained.

Ratio Decidendi: A domestic extension flight remains eligible for concessional fuel benefit where the governing circular so provides and change of flight number or IGM number does not by itself defeat the character of a foreign going aircraft; a pure question of law may also be raised for the first time before the Tribunal.

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