The service tax department has rejected the bid submitted by the UAE-based aviation support firm, Alna Aerodistribution, for acquiring the luxury jet of Vijay Mallya, chairman of the defunct Kingfisher Airlines Ltd, according to official sources.
The company, which was the only bidder, had placed a bid of Rs 1.09 crore for the luxury jet. The bid amount, according to sources was too low and was hence rejected by the tax authority.
“Since the service tax department has rejected the bid, the auction will have to be held again after getting a clearance from the court,” said an official.
The jet was auctioned through MSTC by the service tax department on June 29 and June 30 after the Bombay High Court observed, there was no legal trouble in auction of the aircraft which is on financial lease. Proceeds of the sale has to be deposited with the high court.
The high court is scheduled to hear the case on July 4 said sources.
According to sources, the service tax department had hoped to raise at least Rs 150 crore from the auction of the airbus.
The department had seized the airbus in December 2013, to recover tax dues of over Rs 800 crore.
The luxury aircraft is owned by C J Leasing (Cayman) Ltd and was given on lease to Kingfisher Airlines.
01/07/16 Khushboo Narayan/Indian Express
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The company, which was the only bidder, had placed a bid of Rs 1.09 crore for the luxury jet. The bid amount, according to sources was too low and was hence rejected by the tax authority.
“Since the service tax department has rejected the bid, the auction will have to be held again after getting a clearance from the court,” said an official.
The jet was auctioned through MSTC by the service tax department on June 29 and June 30 after the Bombay High Court observed, there was no legal trouble in auction of the aircraft which is on financial lease. Proceeds of the sale has to be deposited with the high court.
The high court is scheduled to hear the case on July 4 said sources.
According to sources, the service tax department had hoped to raise at least Rs 150 crore from the auction of the airbus.
The department had seized the airbus in December 2013, to recover tax dues of over Rs 800 crore.
The luxury aircraft is owned by C J Leasing (Cayman) Ltd and was given on lease to Kingfisher Airlines.
01/07/16 Khushboo Narayan/Indian Express
