Excise dept moves SC seeking to levy R129-cr service tax on Jetlite
July, 12th 2011
The excise department on Monday moved the Supreme Court seeking to levy service tax of around Rs 129 crore on Jetlite (India). The tax demand pertains to the period between July 2003 and January 2007.
Sahara Airlines (SAL) was taken over by Jet Airways India in January 2006 and the fleet of Sahara was renamed as Jetlite. With a penalty that is roughly equal to the tax , the demand on Jetlite would work out to be higher.
A bench headed by justice DK Jain, however, adjourned the matter for two weeks after additional solicitor general Harin Rawal told the court that he wanted to examine the issue whether the appeal against the CESTAT's judgment that ruled in favour of the airline would lie to the high court or the apex court.
The department has challenged the tribunal's judgment that ruled in favour of Jetlite.