Foreign going aircraft status preserved despite intermediate Indian stops, securing concessional duty and relief from demand.

Aviation turbine fuel supplied to flights operating between India and foreign destinations, with intermediate Indian stops, remained eligible for concessional duty because the stops did not alter the character of the voyage. The Tribunal treated the aircraft as foreign going, not domestic run, where the schedule showed onward and return movement between an Indian airport and an airport outside India, even when touching an intermediate Indian airport. On that basis, the demand, penalty and interest could not be sustained and the assessee's claim for consequential relief succeeded.

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Issues: Whether aviation turbine fuel supplied for flights operating on an international route with intermediate Indian stops was eligible for concessional duty under the exemption notification, and whether such flights could be treated as domestic runs.

Analysis: The flights in question originated in India, travelled to foreign destinations, and returned to India according to their schedules. The intermediate Indian stops were part of the onward and return movement and did not change the character of the voyage. The Tribunal also relied on its earlier decision in the assessee's own case, where it was held that concessional duty could not be denied merely because of a change in flight details when the aircraft remained engaged in carriage between an Indian airport and a foreign airport touching an intermediate Indian airport.

Conclusion: The flights were not domestic runs and were treated as foreign going aircraft entitled to concessional duty. The issue is decided in favour of the assessee.

Final Conclusion: The demand, penalty, and interest could not be sustained, and the appeal succeeded with consequential relief.

Ratio Decidendi: An aircraft operating between an airport in India and an airport outside India, even if touching an intermediate Indian airport, retains the character of a foreign going aircraft and remains eligible for concessional duty where the notification so provides.

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