JetLite set to deposit Rs 70 cr in Sahara tax dues dispute

New Delhi: In a setback to Jetlite (India) Ltd (formerly Sahara Airlines Ltd), the Supreme Court on Monday dismissed the airline’s plea challenging the Delhi High Court order that asked Jetlite to predeposit Rs 60 crore and give a bank guarantee of Rs 10 crore before the sectoral tribunal entertained its appeal.
In order to entertain the appeal itself, the Customs, Excise & Service Tax Appellate Tribunal had earlier insisted that of the total service tax demand of around Rs 258 crore, the company should deposite Rs 100 crore as a pre-deposit pending final settlement. Jet bought Air Sahara in April 2007 for Rs 1,450 crore and later rebranded it to JetLite. Of this purchase price, Jet had paid Rs 900 crore in instalments by April 20, 2008. The tax demand was raised on the basis of the operations of the earlier Air Sahara, before its takeover by Jet.
28/09/10 Indu Bhan/Financial Express

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Categories: Jetlite Sep 2010