2026 (3) TMI 160

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....er] passed by the Commissioner of Customs (Preventive), New Delhi in which he denied the benefit of exemption notification no.21/2002-Cus (S.No. 347B) for the Falcon 2000 aircraft imported by Privilege and confirmed demand of duty of Rs. 19,76,50,325/- under section 28 of the Customs Act, 1962 [Act], confiscated the aircraft and imposed redemption fine of Rs. 15,00,00,000/- under section 125 of the Act and imposed a penalty of Rs. 5,00,00,000/- on Privilege under section 112(a) of the Act and penalty of Rs. 20,00,000/- under section 112(a) of the Act on Shri Wadhawan. 2. Nobody appeared on behalf of the appellants. Nobody has been appearing on behalf of the appellants after the previous counsel Shri Narasimhan had withdrawn his Vakalatna....

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....r or Description of goods Standard rate Additional duty rate Condition No. (1) (2) (3) (4) (5) (6) 347B 8802(except 8802 60 00) All Goods Nil - 104 xxxxxxxx (B) in the Annexure, after Condition No. 102 and the entries relating thereto, the following Conditions shall be inserted, namely:- xxxxxxxxxx 104. (i) the aircraft are imported by an operator who has been granted approval by the competent authority in the Ministry of Civil Aviation to import aircraft for providing non-scheduled (passenger) services or non-scheduled (charter)services; and (ii) the importer furnishes an undertaking to the Deputy Commissioner of Customs or Assistant Commissioner of C....

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....he aircraft was chartered out to one- M/s. Housing Development & Infrastructure Ltd. [HDIL] whose directors were the same as the directors of Privilege. It was used exclusively for the use of the directors of HDIL. Therefore, it was felt that Privilege violated condition no. 104 (ii) of the notification. Accordingly, a Show Cause Notice dated 25.5.2009 [SCN] was issued to the Privilege, Shri Wadhawan and others proposing recovery of the duty payable on the aircraft with interest, confiscation of the aircraft and imposition of penalties on them which culminated in the impugned order. 6. There is no dispute that Privilege had chartered out the aircraft to HDIL for its exclusive use and that the undertaking given by Privilege at the time of....