TaxTMI 
TaxTMI 
2015 (8) TMI 382
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....e aircraft, they had obtained approval from Directorate General of Civil Aviation (DGCA) as required under Civil Aviation Requirements (CAR)-145; that the certificate of approval allows them to carry out minor structural repair; that replacement of seats get covered under such minor structural change; that during the process of replacem ent, the old seats would be removed from the base by unbolting and new seats would be fitted with nuts and bolts. 2. On the instructions of this Authority, applicant filed written submission to show inter-alia that replacement of seats in the existing fleet of aircrafts of the applicant with new lighter seats has resulted in fuel efficiency in its operations. Applicant submits that at present, they are operating 96 Aircrafts of A-320 family; that Airbus has fixed capacity of 180 seats; that such aircrafts were originally fitted with the Weber Passenger seats, which have been replaced by Dragonfly brand in 52 aircrafts out of its fleet of 96 aircrafts; that weight of Weber seat is 13 kg, as compared to weight of Dragonfly seat, which is 9 Kg; that applicant has been able to reduce to weight of its one Airbus 320 by 700 Kg approximately; that if ther....
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....ng, repair or maintenance of the aircraft under condition no. 21 of the Notification No. 12/2012-Cus? 7. Notification No. 12/2012-Cus. dated 17.3.2012, exempts parts of aircraft falling under any chapter from whole of basic customs duty subject to fulfillment of condition no. 21 provided therein. The relevant part of condition no. 21 reads as follows:- If imported for servicing, repair or maintenance of aircraft, which is used for operating scheduled air transport service or the scheduled air cargo service, as the case may be; 8. Applicant has mentioned that the terms "servicing", "repair" and "maintenance" have not been defined under Notification No. 12/2012-Cus. As the benefit is being extended to the aviation industry, these terms must be understood in terms of their usage and practice. Therefore, in order to understand its true meaning under the said Notification, reference must be made to the Aircraft Rules, 1937 and Civil Aviation Requirements (CAR) issued by DGCA. The term 'maintenance' is defined under the Aircraft Rules as follows. Aircraft Rules, 1937- Rule 3 (33C)- "Maintenance" means the performance of tasks required to ensure the continuing airworthiness o....
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....ons cannot be extended to aircraft seats as they do not qualify as parts of aircraft. 13. It is observed that Notification No. 12/2012-Cus dated 17.03.2012 exempts the goods of the description specified in column (3) and falling within the chapter, heading, sub-heading or tariff item of First Schedule to the Customs Tariff Act as are specified in the corresponding entry in column (2) of the Table, when imported into India; a) from so such of the duty of customs leviable thereon under the said First Schedule as is in excess of the amount calculated at the standard rate specified in the corresponding entry in column (4) of the said Table; b) from so much of the additional duty leviable thereon under sub-section (i) of Section 3 of the Customs Tariff Act, 1975 as is in excess of the additional duty rate specified in the corresponding entry in column 5 of the said Table, subject to any of the conditions, specified in the Annexure to the notification, the condition number of which is mentioned in the corresponding entry in column (6) of said Table. 14. S. No. 454 of above notification (relevant entry of the Table) is reproduced as under; S.No Chapter or Heading or Sub-Heading or....
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....ber tubes), of aircraft of heading 8802. Since aircraft seats are to be classified under CTH 94011000 and not under Heading 8803, benefit of Notification No. 12/2012-Cus is not available to import of aircraft seats. Further, Revenue relied on the judgment in Indian Airlines Vs Collector of Customs [1988 (37) ELT 420 (T)], wherein it was held that benefit of exemption notification no. 145/77-Cus dated 1977 is not to be extended to aircraft seats imported by Indian Airlines, as Heading 94.01/04 and not Heading 88, specifically covers seats of a kind used for aircraft. Notification No. 145/77-Cus dated 9.09.1977 exempted Customs duty leviable, which was specified in First Schedule to the Customs Tariff Act, 1975, as was in excess of 3% ad valorem on following goods; a) aeroplane b) aeroplane parts c) aeroplane engines d) aeroplane engine parts, and e) rubber types and tubes used exclusively for aeroplanes. 17. Larger Bench of Tribunal in Indian Airlines, Calcutta Vs Collector of Customs [1988 (38) ELT 679 (38) ELT 679 (T)] examined 2 Notification Nos. 145/77-Cus dated 9- 7-1977 and 99/81-Cus dated 1.4.1981 to ascertain whether imported aeroplane tyres can be exempted from custom....
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....ponents of fuel efficient motor cars in semi-knocked down packs and completely knocked down packs. Undoubtedly, for purposes of levy of custom duty, by virtue of Interpretative Rule 2(a), the components in a completely knocked down pack would be considered to be cars. But in view of the clear language of the Notification the components including components in completely knocked down packs are exempted. Effect must be given to the wording of this Notification. Thus components in completely knocked down packs would get the exemption under this Notification, even though for purposes of classification they may be considered to be cars. 19. Applicant proposes to import seats of aircraft claiming exemption of Notification No. 12/2012-Cus (S. No. 454), wherein parts (other than rubber tubes) of aircraft of heading 8802 are subjected to nil rate of duty. Contention of the applicant is that seats of aircrafts are parts of aircrafts, thus, Notification No.12/2012-Cus needs to be extended to them. Revenue on the other hand, heavily relying on General Rules for Interpretation for Import Tariff, pleads that there is specific entry for "seats of a kind used for aircraft" under Tariff item 94011....