KINGFISHER AIRLINES LTD. Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) THIS stay petition is directed against waiver of the pre -deposit of an amount of Rs. 28,18,465.

(2.) HEARD both sides and perused the records. The issue involved in this case is regarding the customs duty liability on the parts of aircrafts imported by the applicant during the period 1 -3 -07 to 6 -3 -07 for repair and maintenances of aircrafts. Earlier to 1 -3 -07, these parts were exempted from payment of duty vide Notification No. 21/02, dated 1 -3 -02 vide entry No. 347. Applicants were complying with the condition as indicated in the particular entry. Vide Notification No. 20/07, there was an amendment to the notification was made vide which the Sl. No. 347 was split and indicated that the parts of aircrafts should fall under any Chapter Heading of 88.03. Conditions given in the said Entry No. 346 D was para materia to the condition as was indicated in earlier entry.

(3.) THE said Sl. No 346D of Notification No. 20/07 was amended by Notification on 6 -3 -07 to read as any Chapter instead of Chapter 88.03. Lower authorities have come to the conclusion that parts of the aircrafts imported by the applicant during the period 1 -3 -07 to 5 -3 -07 is liable to customs duty since the Notification No. 31/07 is not clarificatory but is amending notification. Any parts imported after 6 -3 -07 are eligible for the benefit of the notification. Learned Counsel would submit that the decision of the Honble Supreme Court in the case of W.P.I.L. Ltd. v. CCE, Meerut, 2005 (181) E.L.T. 359 (S.C.) will squarely cover the issue.