SC asks Jetlite to pay Rs 70 cr

A bench comprising Justice Mukundakam Sharma and A R Dave directed Jetlite to make a pre-deposit of Rs 70 crore as service tax within eight weeks.

The apex court's direction came over a petition filed by Jetlite, challenging the direction of the Delhi High Court to pay Rs 70 crore, which was to be deposited by this week.

The matter is related to alleged service tax evasion by the low cost carrier. The service tax department has asked Jetlite to pay Rs 260 crore, including interests, for evading tax.
This was challenged by Jetlite before the Customs Excise and Service Tax Appellate Tribunal, which as per the rules directed it to make a pre-deposit of half of the tax liability.
The tribunal had ordered the company to make a pre deposit on June 25.

The service tax department had actually sought Rs 260 crore from Jetlite India in 2008 on account of the advertising activities of Sahara Airlines. Jetlite took over Sahara Airlines in 2007.

The department's case was that Sahara Airlines had carried advertisements of a group company, Sahara India Commercial Corporation on its tickets during 2003-2007, thus giving a business auxiliary service to the latter. Thus, Sahara Airlines, and later Jetlite, became liable to pay service tax.

Assembly elections 2019 | Get the latest news, views and analysis on elections in Haryana and Maharashtra on DeccanHerald.com


For election-related news in Maharashtra, click here

For election-related news in Haryana, click here

DH Newsletter Privacy Policy Get top news in your inbox daily
GET IT
Comments (+)