After it froze the bank accounts of the beleaguered Kingfisher Airlines, the service tax department has now served a notice on Jet Airways to pay about Rs 69-crore dues in 24 hours or face similar consequences. The airline said it would pay by Monday.

Central Board of Excise and Customs (CBEC) Chairman S K Goel told Business Standard Jet Airways would have to pay dues of Rs 69 crore immediately as it had defaulted on payment.

“They have 24 hours to make the payment, failing which their accounts will be frozen,” he said.

The CBEC chairman said the department may also consider taking up the matter with global aviation body IATA and serve a show-cause notice on Jet Airways if the payment was not made.

Jet Airways has not paid a total of about Rs 69 crore worth of dues for January and February. The amount was to have been paid by March 6, officials said.

When contacted, Jet’s Senior Vice-President (Finance) Mahalingam Shivkumar said, “There has been some delay due to a hike in oil prices and other costs. We are effecting the payments by Monday. Everything will be normal then.”

In a statement, a Jet Airways spokesperson said service tax dues of Rs 35 crore for January would be paid on March 12 and the remaining amount as due for February would be paid on March 15.

The spokesperson said statements in certain sections of the media that the company’s accounts had been frozen were untrue.

“It is only a delay of about four days… it is like making a mountain out of a molehill,” said Shivkumar.

Source: Business Standard

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