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Tribunal asks Jet to pay Rs 147-cr service tax dues; airline moves high court
April, 29th 2014

Jet Airways has moved the high court here against a Customs Excise and Service Tax Appellate Tribunal (CESTAT) order to deposit Rs 147 crore by May 12 towards service tax dues.

The matter pertains to the imposition of service tax for use of global distribution systems by airlines for ticket reservation. Tax demand was raised against several airlines, including Jet. The demand pertains to the period before July 2012, after which rules were modified to exempt global distribution systems.

A few months ago, the service tax department in Mumbai passed an order asking Jet to pay Rs 147-crore service tax dues. The airline challenged it before CESTAT, which directed the carrier to deposit Rs 147 crore before its appeal could be heard.

A Jet spokesperson said the airline had got a CESTAT order and the airline had filed an appeal to the court.

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