SC refuses to vacate stay on levy of tax on airport services

New Delhi: The Supreme Court on Monday directed the Airports Authority of India (AAI) to move the Madras High Court for obtaining vacation of stay on levy of service tax on airport services.
Levy of sales tax by AAI has been challenged by licencees in the high courts of Delhi, Bombay, Madras, Karnataka, Kerala, and Andhra Pradesh. The high courts had stayed the recovery notices issued by the authority.
AAI has also sought transfer of a bunch of petitions in this regard to the Delhi High Court.
A bench headed by Justice BN Agrawal refused to transfer the petitions saying AAI should move the high court for vacation of stay.
Earlier, it had issued notice to various parties, including Jet Airways, Flemigo Duty Free Shops, Thomas Cook India, Siddhi Vinayak Enterprises, PK Hospitality Services, Karnataka Commercial and Industrial Corporation, asking them to explain why the petitions should not be transferred to the Delhi High Court.
While seeking transfer of petitions, AAI had contended that there was a likelihood that the high courts might give different interpretations on the same issue which would lead to "judicial disharmony."
27/08/07 PTI/Economic Times

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Categories: Airports Aug 2007