Aircraft Used Only For Providing Non-Scheduled Passenger Services Entitled For Customs Exemption: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that aircraft used solely for non-scheduled passenger services qualify for customs exemption. It found that the appellant didn't meet exemption notification conditions as the aircraft wasn't used for 'Air Transport Service' as defined in Rule 3(9) of the Aircraft Rules. \r

The tribunal clarified that for a service to qualify as 'air transport service,' remuneration is essential. Despite being permitted for non-scheduled passenger services, the helicopter was used for charter purposes, prompting a show cause notice. The tribunal concluded that NSOP (passenger) permits can cover charter services, as upheld previously. \r

As the helicopter was used commercially, except for maintenance tests, it was deemed a 'Private Aircraft.'