An appellate tribunal has ruled in favour of JetLite (India) Ltd, setting aside a demand by the service tax department for Rs.257.84 crore in tax and penalty from the low-fare airline. The dispute relates to a period before Jet Airways (India) Ltd bought Air Sahara, now JetLite, from Sahara India Commercial Corp. Ltd in 2007.
Between 2003 and then, Air Sahara had entered into an agreement with Sahara India Housing Ltd, for printing the Sahara logo on tickets, boarding passes and baggage tags. After the purchase, service tax authorities sent a notice to Jet Airways in 2007 citing consideration derived from printing the logos.
For Jet Airways, the verdict means a relief of Rs.350 crore, including interest. Jet faces another case related to the acquisition. The initial acquisition price of Rs.2000 crore was renegotiated to Rs.1, 450 crore. But Sahara India filed an application with the Bombay high court on 26 March 2009 claiming that Jet Airways had defaulted on payments towards the purchase of Air Sahara, and sought the court’s permission to seize Jet’s assets.
Company Name | CMP |
---|---|
Interglobe Aviation | 4608.45 |
SpiceJet | 57.20 |
Global Vectra Helico | 286.95 |
Taneja Aerospace | 437.50 |
TAAL Enterprises | 2884.45 |
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