Mumbai: Air India has secured relief from the Service Tax Appellate Tribunal in Mumbai, which has set aside the department's Rs 211 crore tax claim.
The national carrier had moved the Tribunal against the service tax commissioner's order demanding Rs 211 crore in unpaid dues and an equal amount in penalty plus interest.
The department had slapped tax demand last September accusing the national carrier of not paying service tax on cargo handling services it rendered to foreign airlines between 2002-2007. However, in its last week order, the tribunal upheld Air India's contention that it was not liable to pay the sum.
The airline has been in default with regards to service tax payments and last year the department had frozen its account for non payment. Hence, the tribunal's directions come in as a relief for Air India.
04/03/12 Aneesh Phadnis/BUsiness Standard
