Appu Hotel Ltd. Vs. Commissioner of Customs - Court Judgment

Excerpt:

.....by a hotel industry for rendering services. on these facts, there is no testification in denying the benefit of notification no. 29/97-cus. to the assessee, who undisputedly satisfied other conditions of the epcg scheme. as regards their claim for the benefit of notification no.28/97-cus., we must hold the same view inasmuch as chandeliers and light fittings are equipments/accessories required by a hotel industry for rendering services vide explanation to the notification. again, the revenue has no case that assessee did not fulfil other obligations under the epcg scheme.2. in the result, the impugned order is set aside and this appeal is allowed.(operative portion of the order was pronounced in open court on 28-01-2008)

Judgment:

1. This appeal filed by the assessee is against denial of the benefit of Customs Notifications No. 28/97 and No. 29/97 both dated 01.04.1997 (EPCG scheme) by the lower authorities in respect of 'chandeliers and light fittings' imported by the assessee. After examining the records and hearing both sides, we note that, admittedly, the above items were covered by the EPCG licences whereunder they were imported. The denial of the benefit is on the ground that the items are not covered by the definition of "capital goods" given in the Notifications. We find that, under the above Notifications, service providers such as hoteliers like the appellants were eligible to import capital goods at concessional rate of duty under the EPCG scheme. In respect of Notification No.28/97, "capital goods" means any plant, machinery, equipment and accessories required for - In respect of the other Notification, "capital goods" means any plant, machinery, equipment and accessories required for - (c) in the case of hotel industry and tourism industry, plant, machinery, equipment and accessories required for rendering services, specified in Annexure-I.This annexure contains a long list of items required by hotel and tourism industries. The case of the lower authorities is that 'chandeliers and light fittings' do not figure in the list and hence would not qualify for the benefit of the Notification as capital goods.

However, we find that 'lighting equipments' figure in the list of capital goods in Annexure-I to Notification No. 29/97-Cus. It cannot be gainsaid that chandeliers and light fittings are required by a hotel industry for rendering services. On these facts, there is no testification in denying the benefit of Notification No. 29/97-Cus. to the assessee, who undisputedly satisfied other conditions of the EPCG scheme. As regards their claim for the benefit of Notification No.28/97-Cus., we must hold the same view inasmuch as chandeliers and light fittings are equipments/accessories required by a hotel industry for rendering services vide Explanation to the Notification. Again, the Revenue has no case that assessee did not fulfil other obligations under the EPCG scheme.

2. In the result, the impugned order is set aside and this appeal is allowed.

(Operative portion of the order was pronounced in open court on 28-01-2008)