Service Tax Dept slaps notice to Kingfisher, seizes planes

Fresh trouble is brewing for Kingfisher Airlines,This time, the service tax department has issued a notice to the carrier, "impounding" all its aircraft 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 authorities, 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, "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)," Also Read: Kingfisher down on staff looking to file liquidation appeal It may be noted that the airline was served a notice by the authorities early last year and its bank accounts got freezed  but were unlocked later, after it started paying its dues in installments. The airline has several times said that it is in  talks with investors to offload stakes but so far nothing concrete has come up. Bankers who have lent around Rs 7,500 crore to the beleagured carrier have also given the company an ultimatum to present a revival plan or face their ire. The Directorate General of Civil Aviation has also suspended flying licence of the airline but chairman Vijay Mallya is hopeful of flying by March with seven planes with more aircraft additions later on.
(with inputs from PTI)