The Hindu Business Line : 200 aircraft import transactions under Customs dept scanner

Investigations by the customs department reveal that over 200 aircraft have been imported in the recent years by more than 70 NSOPs some of whom may still be misusing the duty free import benefit that is not available for private use of these aircraft.

Our Bureau

New Delhi, Aug 21 In what seems to be a prized catch of customs duty evasion on aircraft imports, the customs department has brought under its scanner over 200 aircraft import transactions of more than 70 non-scheduled operators (NSOPs), stating that some of them may have resorted to aircraft import for private use ostensibly under the non-schedule operator permit and availed themselves of undue duty exemptions.

This follows the initial success tasted by the department in issuing show cause notices to as many as 10 different entities, involving 13 different aircraft, for alleged duty evasion of about Rs 180 to Rs 200 crore. The department has so far received bonds worth Rs 889.58 crore and bank guarantees to the tune of Rs 203.35 crore from these 10 entities.

Moreover, seven other importers had during the last few months forked out customs duty of about Rs 57 crore for their aircraft import transactions under NSOP permit.

The department has also been encouraged by the fact that the High Courts at Delhi and Kolkata had come out in its favour and disposed of petitions of certain corporates to which notices were issued. These companies were asked to cooperate with the department’s investigations. While Global Vectra Helicorp and Taneja Aerospace had approached Delhi High Court, Dove Airlines had approached Kolkata High Court.

Investigations by the customs department reveal that over 200 aircraft (including the 13 for which seizures were effected and show cause notices issued) have been imported in the recent years by more than 70 NSOPs some of whom may still be misusing the duty free import benefit that is not available for private use of these aircraft, Dr Anup Swarup, Commissioner of Customs, told reporters here today.

In response to a question on whether Mr Vijay Mallya, promoter of Kingfisher Airlines — a scheduled airline operator, using his private aircraft for employees and guests would also come under scanner, Dr Swarup said that “nothing can be ruled out”. He also said that none of the 13 aircraft/helicopters for which show cause notices were issued were charging any fare for usage.

Aircraft imports by NSOPs are customs duty exempt from May 2007 so long as certain conditions are met. Customs department contends that there were post-import violations as many aircraft were being put to private use.

Import condition specified that NSOPs should use the aircraft “only” for providing non-scheduled (passenger) services or non-scheduled (charter) services (and not for private use).

Budget 2007-08 had imposed 3 per cent import duty on all private import of aircraft and helicopters. Such imports also attracted countervailing duty and additional customs duty.

This implied an overall effective duty of about 25 per cent for private import of aircraft.

Import of aircraft, including helicopters, by Government and scheduled airlines were already customs duty exempt and the Finance Minister, Mr P Chidambaram, had in his 2007-08 budget speech said that this position would continue.

In May 2007, the Government specifically gave customs duty exemption on aircraft imported by non-scheduled operators and spelt out conditions that had to be adhered for this benefit.

More Stories on : Airlines | Exports & Imports | Excise and Customs

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Non-metro airports: ‘Deviation’ from panel decision questioned

Alliance Air links Chennai, Vizag

Third runway at Delhi airport opens for trials

200 aircraft import transactions under Customs dept scanner

Kandla port remains headless since Feb

DP World move to ease box congestion at Kochi terminal

Collect and drive