The Central Board of Excise and Customs (CBEC) has frozen the bank accounts of the debt-ridden state carrier Air India (AI) for non-payment of the December installment, as promised by the latter.
“Despite cautioning Air India, it failed to deposit the full December installment, which it had promised, so the board has frozen the Air India’s bank accounts,” a CBEC source said.
When contacted, Air India did not offer comments.
The service tax arrears of AI stand at Rs 300 crore. The airline collects service tax from passengers, which in turn should be deposited with the CBEC.
The tax authorities had frozen 11 bank accounts of Air for non-payment of service tax dues in the beginning of December 2011 and later de-froze them after receiving a part installment.