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Kingfisher aircraft impounded over non-payment of service tax

The beleaguered airline has to pay Rs 63 crore apart from the interest payable on it thereon. The airline also has to pay around Rs 128 crore in other dues to the tax department.

BT Online Bureau   New Delhi     Last Updated: December 12, 2012  | 13:15 IST

The Mumbai Service Tax Department on Tuesday seized an aircraft of the grounded Kingfisher Airlines for defaulting tax dues amounting to Rs 63 crore.

"We have seized one ATR aircraft of the Kingfisher Airlines as the carrier has failed to clear our dues," Mumbai Service Tax Commissioner S K Solanki said

The beleaguered airline owes around Rs 190 crore to the Service Tax Department, of which Rs 127 crore are under litigation.

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The Vijay Mallya-owned carrier said it has received a notice from the service tax department to which it has already responded.

"Since the aircraft is taken by Kingfisher purely on operating lease basis and the airline is only a lessee of the aircraft (not the owner), it does not feature as an asset in the books of accounts of Kingfisher," the Airline said.

The cash-strapped airline is also facing eviction from Mumbai airport for Rs 22 crore dues towards parking and navigational charges.

With PTI inputs

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