TaxTMI 
TaxTMI 
2018 (12) TMI 671
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....d imported two cars, a Toyota Camry through Nhava Sheva and a BMW through ICD, Tughlakabad, against license issued by Director General of Foreign Trade under the Export Promotion Capital Goods scheme in the Foreign Trade Policy. In the present proceedings, we are concerned with the first of the two cars. At the time of import, duties of customs amounting to Rs. 7,62,548 had been foregone by recourse to notification no. 55/2003-Cus dated 1st April 2003 pertaining to imports under the said scheme. Ruling on the ineligibility of the imported car for the benefits of the scheme, and thereby the exemption notification, recovery of the duty foregone ordered by the original authority along with confiscation of the car to be redeemed on payment of f....
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....'ble High Court of Delhi in Commissioner of Customs v. Air Travel Bureau Ltd [2010 (260) ELT 78 (Del)]. 3. Learned Authorised Representative places reliance on the decision of the Hon'ble High Court of Kerala in Commissioner of Customs v. Kumarakam Lake Resorts [2011 (268) ELT 153 (Ker)] 4. It is seen from the records that the proceedings were initiated against the appellants as the entitlement to import of motor vehicles under the scheme was considered to be questionable and that, in consequence of the privileges arising solely from discharge of obligation through earnings in freely convertible foreign exchange from export of goods, the appellants could have obtained the license by mis-declaration in their application. Consequently, ....
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....imed for rendering of services, customs authorities are bereft of such records, and of competence to adjudge, the consummation of obligation. Further, as pointed out by the appellant, customs authorities have also been instructed by the Central Board of Excise & Customs not to proceed unilaterally. In the present instance, the proceeding was not only initiated but also in excess of jurisdiction to do so. 6. The decision of the Hon'ble High Court of Kerala in re Kumarakam Lake Resort was rendered in the context of patent and uncontroverted violations and the specific finding of '5.... We are of the view that Joint Director General of Foreign Trade recklessly and indifferently issued the discharge certificate under the EPCG Scheme witho....
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....le capital goods may or may not be capable of generating convertible foreign exchange by their independent use as is the position in the case of the lift in a hotel or the cars imported by the travel agent, the least that the importer must demonstrate is that the goods were put to use for the business activity for which the same were imported. The Scheme does not in our view envisage imports where the goods are not meant for use in the business activity of the importer nor can the goods be diverted for some other use without violating the conditions of actual user which is fundamental to the Scheme." 6. Once we apply this yardstick to the facts of the present case, the conclusion would be that the respondents have been able to fulfill th....