Service tax department impounds KFA aircraft

The service tax department has impounded an aircraft of Kingfisher Airlines for failing to pay tax dues amounting to Rs 77 crore, a government official said today.

"Yes, we have seized one ATR aircraft of the Kingfisher Airlines because the carrier defaulted in paying the dues," Sushil Solanki, service tax commissioner, Mumbai, told The Indian Express.

The airline owes around Rs 190 crore to the service tax department, of which Rs 127 crore is under litigation. The airline has been grounded since October 1 following a strike by its pilots and engineers over non-payment of salaries. The flying license of the airlines has also been suspended.

Earlier, the department froze the accounts of the airline on non-payment of the dues though later they were defrozen when the airline promised to pay the dues in instalments.

The Vijay Mallya-owned carrier today said it has received a notice from the service tax department to which it has already responded. The airline is also facing eviction from Mumbai airport for Rs 22 crore dues towards parking and navigational charges.

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