Now, service tax department goes after Kingfisher chief

The Service Tax department on Wednesday approached the Bombay High Court seeking dues from Kingfisher Airlines (KFA) and pleaded for impounding of its founder Vijay Mallya’s passport.

“Mention plea on Friday,” said Justice C V Bhadang, when lawyer Advait Sethna sought impounding and freezing of his passport and restrictions on his movement abroad.
The Service Tax Department said that KFA had collected from passengers large sums of money as service tax but the company had not deposited any money to the government exchequer.

It may be recalled that the Service Tax Department had two cases against Mallya before a Metropolitan Magistrate’s court in Mumbai in respect of Service Tax dues of Rs 32.68 crore and Rs 23.38 crore, respectively, for different periods. While the first was being heard, the other one was still pending. The department further pleaded the total disputed liability of Mallya with respect to service tax was to the tune of Rs 535 crore, though admitted liability was 56.06 crore.