Thursday, March 02, 2017

HC lets IndiGo plane fly after Rs 8cr octroi fee

Mumbai: An IndiGo aircraft grounded in January following an engine fire was allowed to fly again by the Bombay high court, but only after the airline secured a bank guarantee for BMC's Rs8 crore octroi demand for two imported aircraft engines, reports Swati Despande .
Under civic octroi rules of 1965, the duty is on import of goods used, consumed or sold in the city. The bank guarantee is the highest for octroi in the last five decades, said a civic official.
The airline had dragged the BMC to court disputing the octroi demand. The issue raised was whether an aircraft engine, comprising a part of the aircraft when imported into Mumbai to be fitted into an plane to enable it to fly out of the city, would be seen as amounting to 'use' of such a spare part for levy of octroi.
A bench of Justices M S Sonak and Anil Menon said the issue needs "factual determination, particularly with regard to the term 'use' within Mumbai." Last month the HC directed the civic octroi collector Adesh Bhangle to decide whether the aircraft engine would be liable, based on rules, law, SC rulings and facts of its use. Pochkhanawalla said Bhangle would give the airline a personal hearing.
02/03/17 Times of India