2008 (8) TMI 258

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....edez Benz cars in 2001 totally valued about Rs. 1.1 crore and they were required to meet "export obligation" to the tune of five times value of the imported goods within eight years. The Department issued a show cause notice alleging that they have not shown separate income in foreign exchange attributable to three Mercedez Benz cars imported by them and seeking to demand duty. However, Commissioner after examining the reply and hearing the party came to the conclusion that there was no violation of the conditions of EPCG licence. The Department is in appeal against the said order. 4. Learned DR reiterates the grounds of appeal. He draws our specific attention to the fact that the cars have not been registered for use commercial vehicle ....

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....s of the Department are that the importer had stated that the purpose of the import of these cars would be 'service to be provided to hotel, foreign guest in hotel industry'. It has been further alleged that this service should have been provided to foreigners at the hotel in Kanpur. The record of 'Taxi Hire Income' for the period 26-7-01 to 10-1- 2003 did not reflect the revenue from the said three imported cars. On this basis it has been alleged that these three Mercedez cars have not been used for the purpose intended. It has additionally being alleged that these cars were registered for private/personal use with the licensing authority under Motor Vehicle Act and not for commercial use. 26. Neither the Import Policy nor the Customs N....