2006 (2) TMI 56

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.... for the Revenue. 3. The allegation is that the appellants cleared Aviation Turbine Fuel (ATF) valued at Rs. 3,07,60,171/- on payment of Rs. 61,188/- by mis-declaring the Domestic Flights as International Rights. They actually paid duty only at the rate of Rs. 24.94 per KL. In terms of Notification 46/94, dated 22-9-94 as amended. According to the Revenue, the actual Central Excise Duty payable at the rate 16% amounted to Rs. 50,41,424/-. Therefore, it was alleged that the appellants short paid an amount of Rs. 49,80,236/-. The original authority, in the impugned order, confirmed the duty demanded. Further, interest under Section 11AB was demanded. Equal penalty under Section 11AC was imposed. 4. Shri K. Balamurugan, Sr. Manager, IOC,....

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....her words, the concession available to stores supplied to foreign going air- crafts/vessels is not available. Therefore, the original authority held that the fuel supplied to domestic extension flights operating between Hyderabad and Mumbai are not entitled for concessional rate of duty. The reasoning given by the adjudicating authority is that these flights ply between two Indian Airports without a trip to a foreign airport on their voyage. They are also assigned different flight nos. and ferry passengers within the territory of India only. Further, these flights have no correlation of any sort with the flight, which are arrived from or are bound to a Airport at the point of loading or off loading. Section 2(21) of the Customs Act, 1962 de....

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....ler vessels are utilized to transport cargo from mother vessel to the Port and these smaller vessels also are treatable as foreign going vessels. The Apex Court, in the case of Trustees of the Port of Madras (Cited supra) has held that daughter vessels used for onward carriage of goods from the foreign ship to the Port are entitled for imported stores supplied out of bonded stock, free of duty. The Collector of Central Excise (Appeals) in the order cited supra has held that the flight between Hyderabad and Mumbai qualifies to be referred to as foreign going aircraft "for the time being is/was engaged in the carriage of goods and passengers" between Hyderabad and Jeddah. In the Board's Circular dated 25-6-2002, the earlier Circular 65/2001-C....