AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2017 (12) TMI 103
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....According to Revenue there was no maintenance of log book. Vehicles were not used for ferrying foreign tourist but were used by Directors. The vehicles were not found in the premises of the hotel. Statements of the security personnel did not provide a basis to hold that the vehicles were used for foreign tourists or similar such purpose. 3. Inviting attention to the EPCG licence it is the submission on behalf of the appellant that a copy thereof available at page No. 4 of the paperbook, no way requires any log book to be maintained except requiring the purpose of the import to avail duty exemption and also fulfilling the export obligation providing transport services to the foreign customers of the hotel. The actual user condition of the vehicles was fulfilled and foreign exchange requirement was also fulfilled adding to the earning of hotel. The registration addresses of the vehicles is also clear from the registration certificate and appellant has not violated any condition of the EPCG licence issued to it by the DGFT authority. That authority clarified in the letter dated 24/07/2006 that so long as the vehicles is not mis-used and has served the purpose of import, the dut....
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....only issue as to whether there was a personal use of the vehicle or not. He has not brought out any cogent and credible evidence and reason showing that the vehicles were used by Directors and not at all used for foreign tourists/visitors. 8. Appellant maintained proper books of accounts to establish that foreign exchange earned from the hotel activity including travel cost from foreign tourist service towards provision of service to them. There is no mistake pointed out by Revenue to show maintenance of accounts was not proper except raising objection on the log book. Foreign exchange earning was not at all questioned by Customs. According to appellant, neither violation of the condition of the Policy nor condition of the notification as well usage of the vehicle was alleged except alleging that vehicles were used by the Directors. But law does not prohibit solitary use by Director in unavoidable circumstances which does not amount to violation of the condition of the Policy or Notification or DGFT licence. 9. Appellant relies on the decision of the Hon ble High Court of Delhi in the case of Commissioner of Customs (Air Cargo Export) v. Hotel Excelsior Lt....
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....ed otherwise in providing Hotel Service by the Hotel in any manner. In this case, the cars have been used by HEL for providing hotel services to foreign guest by using the car by their Directors. It is not the case of the Revenue that these cars were not used by Directors who are ultimately managing the hotel. Therefore, in this case the cars have been indirectly used by HEL in providing hotel service to foreign guest. It is not the case of the department that the cars have not been put to such indirect or lateral use to discharge for export obligation. The customs notification does not provide for such indirect or lateral use of the capital goods imported under EPCG scheme. It was also not the case of the department the provisions of foreign trade policy do not permit such indirect or lateral use of the cars. However, it has not been canvassed by the ld. Counsel for the Revenue that how this customs notification which provides for the use of car by foreign tourist to earn export obligation. The definition of capital goods is same for other capital goods as well as cars are identical in both notifications as well as in policy. The export obligation for the importer rendering serv....
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.... premises, appellant s submission is that the foreign exchange earning was fulfilled as required by the decision of the Hon ble High Court of Delhi cited (supra) and also fulfilled user condition as held by the Tribunal. Present case is not a case of any violation of any condition of import licence or condition of notification, as well as EPCG licence for which Revenue s allegation fails to stand and adjudication is baseless. 13. Per contra, Revenue s submission is that the vehicles imported by the appellant were not used for the purpose that was intended to be used which has violated the condition of the Policy as well as Notification and EPCG licence. EPCG licence requires vehicles to be registered as tourist vehicle and should fulfill conditions of the licence prescribed by the transport authorities. There was a total violation of the condition of the transport policy attached to the Policy without using the vehicles as tourist vehicle in view of the following evidence gathered by investigation: (1) vehicles were found to be used by Directors (2) there was no logbook maintained to show about journey of the foreign tourist. (3) Log book whic....