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Service Tax Dept notices Kingfisher, `impounds' all aircraft

Last Updated: Thursday, January 10, 2013 - 23:55

Mumbai: In more trouble for beleaguered Kingfisher Airlines, Service Tax Department has issued a notice to the carrier, "impounding" all its aircraft, department sources said Thursday night.

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 aircraft.

Earlier, with employees threatening to move court for closure of the company, Kingfisher Airlines chairman Vijay Mallya Thursday finally broke his silence through a letter to his employees saying the management is making every effort to restart operations.

At the same time, Mallya urged the employees to be careful in their interaction with the media, alleging "negative reporting" by media on the carrier.

The employees of the grounded Kingfisher Airlines, who have not been paid for eight months now, had Wednesday threatened to file a winding up petition in the court under the Company's Act, if the management did not share its revival plan with them.

"We have submitted a detailed restart plan to the DGCA which is in two parts. The first part deals with a limited re-start utilising 7 aircraft ramping up to 21 aircraft in 4 months. The second part is a full scale rehabilitation of our airline growing to 57 aircraft within 12 months of recapitalisation," Mallya informed his employees in the letter.

Kingfisher Airlines, however, in a late Thursday night statement, said that the Service Tax Department has not 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.


First Published: Thursday, January 10, 2013 - 23:52
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