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Service tax due, 2 Kingfisher planes seized

Two Kingfisher airplanes have been impounded in Mumbai in the last three days after the airline’s failure to pay service tax dues of Rs. 63 crore.

Updated on: Dec 11, 2012 12:48 PM IST
Hindustan Times | By , Mumbai
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Two Kingfisher airplanes have been impounded in Mumbai in the last three days after the airline’s failure to pay service tax dues of Rs63 crore.

HT Image
HT Image

A notice issued by the service tax department states that the airline has additional outstanding dues of about Rs128 crore.

“We have impounded one aircraft while the second one is in the process of detention,” said Sushil Solanki, commissioner, service tax, Mumbai. He added that the department has informally directed the airline not to move three more planes, as they too might be impounded. The airplanes were impounded between December 8 and 10.

The airline can’t lease the aircraft or use it to raise any revenue. This will add to the cash-strapped airline’s problems in resuming services.

A Kingfisher spokesperson said: “We have told the department that the airline is a lesse of the impounded airplanes. Since the airline does not own the aircraft, it can claim compensation against losses incurred because of the department order.”

 
ABOUT THE AUTHOR
Soubhik Mitra

Soubhik Mitra is an assistant editor with the Hindustan Times. The Mumbai boy has spent over a decade reporting on civic, environmental and political issues. His current stint is the longest where he writes on aviation and travel.

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