Bombay HC adjourns service tax department’s plea against KFA till Mar. 28

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Mumbai, Mar. 11 (ANI): The Bombay High Court on Friday adjourned the service tax department’s plea against Kingfisher Airlines till March 28.

The counsel for the department, Advait Sethna, said the offence of non-payment of service tax which has been collected from the passengers and not paid to the government coffers is a non- bailable offence.

Sethna said that order that granted bail to the managing director and other of the Kingfisher Airlines leads to the miscarriage of justice as the order basically proceed on the premise of the offence is bailable.

“We basically said that we have filled a criminal application which is against the order of the lower court. Dated 16 February 2015, according to us the order that granted bail to the managing director and others of Kingfisher airlines was an illegal order,” he added.

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“We challenge the order. We have requested the court that a fix date should be given for the hearing of the application. The court has now given us a fix date of hearing which would be on the 28th march of this month,” he said.

Kingfisher Airlines, which was started by former liquor baron Vijay Mallya in 2003, however became the group’s bottomless pit and precipitated the default on loans taken to revive the sagging fortunes of the carrier.

The liquor baron has been declared a willful defaulter and has a huge debt of Rs 9,091 crore to the banks.

A consortium of lenders, led by State Bank of India, had moved the apex court to prevent him from leaving the country and impounding his passport even as the loan recovery procedure for Kingfisher Airlines is still on.

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The apex court has asked the UB group chairman to be present before it on March 30 along with his passport, after learning that he had left the country on March 2. (ANI)

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