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OFFICE
OF THE COMMISSIONER OF CUSTOMS, |
PUBLIC NOTICE NO. 380 /2001
Subject: Leviability of customs duty on fuel and other stores consumed on board during extension flights
in domestic sector -reg.
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Government
of India, Ministry of Finance, Department of Revenue, New Delhi, Circular
NO.65/2001-Cus vide F. No.
446/18/99-CUS.IV, dated 19.11.2001, is reproduced below for the guidance
of the Importers, Clearing Agents and Trading Public.
C11/123/2001-AP(PORT)
CUSTOM HOUSE, CHENNAI-1. (S.SANKARAVADIVELU)
DATED: 21.12.2001 DY.
COMMR. OF CUSTOMS (APPG.)
Circular No.65/2001-CUS.
F.No.446/18/99-CUS.IV Dated 19th November, 2001
A reference has been received from the Ministry of Civil Aviation
requesting the Board to allow duty free supply of fuel and stores to domestic
extension flights of Air India which ply between two airports in India carrying
international as well as domestic passengers. Such extension flights are
presently operating between Mumbai and Ahmedabad/Hyderabad/Goa/Calicut etc. The
Ministry of Civil Aviation has requested that such extension flights should be
treated as foreign going aircrafts, as these carry international passengers
from an international airport in India. Most of the passengers on such
extension flights are stated to be either in bound or out bound to
international destinations. These flights allow passengers to travel between an
international destination and an Indian airport such as Ahmedabad/Hyderabad/Goa/Calicut
etc. on a single flight coupon.
2.
The matter has been examined. It is seen that these extension flights ply
between two Indian airports without a trip to a foreign airport on their
voyage. They are assigned different flight numbers and IGM/EGM No. per voyage,
and ferry passengers within the territory of India only, Further, these flights
are stated to have no co-relation of any sort with the flights which have
arrived from or are bound to a foreign port at the point of loading or off-loading.
It has, therefore, been felt that the extension flights operating between two
Indian airports cannot be considered as foreign going aircraft, as section
2(21) of the Customs Act, 1962 defines 'foreign going aircraft' as an aircraft
for the time being engaged in the carriage of passengers between an airport in
India and any airport outside India, whether touching any intermediate airport
in India. The domestic extension flights cannot be considered similar to
flights which operate between an airport in India and an airport abroad,
touching one or more Indian airports in between. Section 87 of the Customs Act,
1962 allows imported stores to be consumed without payment of duty in a foreign
going aircraft. It has, therefore, been decided that the extension flights
operated by Air India between Mumbai and other airports or between two airports
in India would not be entitled to duty free supply of fuel and other stores.
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