Service Tax Dept issues notice to Kingfisher Airlines

Business

oi-Sneha

By Sneha B K

Updated: Friday, January 11, 2013, 11:08 [IST]

In more trouble for beleaguered Kingfisher Airlines , Service Tax Department has issued a notice to the carrier, "impounding" all its aircrafts, department sources said here tonight.

According to the notice, the airline cannot fly outside the registered airport premises.

The grounded airline owes around Rs 190 crore to the Service Tax Department, of which Rs 127 crore are under litigation. The notice was issued a fortnight ago, sources said.

The sources also said the department has enlisted the help of the Customs to impound the aircrafts.

Kingfisher Airlines, however, in a late night statement, said that the Service Tax Department has impounded any of its aircraft except two planes including an Airbus 320.

"We categorically state that the Service Tax Department has not impounded any aircraft except an Airbus A320 (passenger jet VT-DNZ) and an ATR-72-500 (VT-KAR)," the statement said.

PTI