CESTAT adjudicated a customs duty and penalty case involving...

CESTAT adjudicated a customs duty and penalty case involving aircraft import exemption. The tribunal held that the exemption notification permits use of imported aircraft for both Non-Scheduled (Passenger) and Non-Scheduled (Charter) Services. The appellant's leasing of aircraft to other entities does not violate exemption conditions. The Commissioner's findings were deemed unsustainable, and the penalty imposed under sections 112 and 140 of the Customs Act was set aside. The tribunal allowed the customs appeals, effectively releasing the appellant from the disputed customs duty and penalties, and affirming a broader interpretation of the exemption notification's operational scope.