|
Regarding leviability of customs duty on fuel and other stores consumed
on board during extension flights in domestic sector
Circular No. 65 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
outbound 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.
3. These instructions
may be brought to the notice of all concerned by way of issuance of suitable
Public Notice/ Standing Order.
4.
Difficulties, if any, in implementation of these instructions, may be
brought to the notice of the Board. Kindly acknowledge receipt of this Circular.
|