New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
CGST - Acts + GST Rates GST Ntf. GST Forms GST - Manual GST - FAQ State GST Acts SGST Ntf. I. Tax Manual
Extracts
Home List
← Previous Next →

M/s. SPICEJET LTD. Versus UOI & ORS.

Inland Air Travel Tax - refund claim - refund sought contending that it was not liable to pay the said amount towards the IATT dues - Held that: - the aircraft which was in possession of the carrier was first distrained and then released to the Lessor upon the deposit of an amount near equivalent of the dues then outstanding. Therefore, the deposit would represent only the aircraft and not such amounts as were to be recovered from the carrier. The Lessor was, obviously interested in release of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

by a third party could not be deemed to have been adjusted against the aforesaid dues of the tax as well as the penalty. Financial constraints of the carrier do not constitute a valid reason for either waiver of any dues under Section 42 and 43-A of the Act or under Section 46 of the Act. - Penalty - Held that: - The deliberate withholding of monies (taxes) by the petitioner from such statutorily sanctioned collections and diversion of it by the carrier for its own private use, instead of c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

; MR. NAJMI WAZIRI JJ. Petitioner Through: Mr. Atul Sharma, Adv. Respondents Through: Mr. Sanjeev Narula and Sh. Abhishek Ghai, Advocates. NAJMI WAZIRI, J (OPEN COURT):- 1. This petition impugns the order of the Government of India dated 30.04.2001 which upheld the Order-in-Appeal dated 25.08.2000 passed by the Commissioner of Customs (Appeals), New Delhi. The Order-in-Original dated 30.04.2001 passed by the Commissioner of Customs, New Delhi had imposed a demand of ₹ 8,65,06,850/- being I .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

llect tax on every inland journey from the passenger @ 10% of the fare. The carrier has to credit the amount to the Central Government failing which an interest on the amount of tax not paid for the delayed period is payable at the rate not below 20% and not exceeding 30%. Admittedly, the petitioner/carrier under the Act, did not pay the amount although it had collected it from its passengers. Therefore, the minimum rate of 20% was imposed on the unpaid amount. In default of payment of the deman .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

dues. That writ petition was disposed off on 18.01.1999 in view of the order passed by the Assistant Commissioner of Customs on 13.01.1999 holding that the aforesaid amount of ₹ 8,65,06,850/- along with interest @ 20% and penalty amount of ₹ 25 crores was payable. 3. Aggrieved by the aforesaid Order-in-Original dated 13.01.1999, the petitioner preferred an appeal wherein the Commissioner of Customs (Appeals) confirmed the aforesaid demand. However, the penalty amount was reduced to & .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

by the Assistant Commissioner in the impugned order that the appellants had not produced any letter from the lessor or any TR6 Challan to prove that the amount of ₹ 12.5 crore was deposited against the liability of the appellants, no such requisite evidence has been produced even before me. With a view to the foregoing, I hold that the dues, determined in the impugned order on account of IATT and interest thereon, are still unpaid and the appellants have been withholding that payment in gr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

der has been adjudged in terms of provisions of Section 46 of the Act, I fail to find any relevance of this pleading. After examining the provisions of Section 46 of the Act, I find that in such cases of non-payment of IATT within the stipulated time, a penalty, which is not to be less than one fifth and which can extend upto three times of the unpaid amount of the IATT, can be imposed. Such cases, where the concerned persons act in utter disregard to the law, call for the imposition of a higher .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er (Appeals) was also of the view that the amount of ₹ 12.5 crore lying deposited against the distrained aircraft in terms of Section 46A of the Act could not be deemed to have been recovered against the amounts payable by the carrier because it was the carrier s specific liability which had to be discharged by it. The Commissioner (Appeals) reasoned as under: Thus, the facts, placed before me, clearly evince that the amount of ₹ 12.5 crore is lying deposited and represents the distr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

opriated towards the outstanding dues if the petition is ultimately dismissed. I thus find that the letter in question, as it uses the words can be expresses only a probability about the appropriation of the amount. It no where says that the amount deposited by the lessor has been or shall definitely be appropriated towards dues adjudged against the appellants. The plea, thus, I hold, is devoid of substance. In any case, the order of the Hon ble High Court passed on 18.01.99 in CW 1908/97, where .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ned, no other or further order deserves to be issued in this petition except that respondents Nos. 1 to 3 will act in accordance with law to recover the amount subject to course of rights of respondent No.5 to challenges the said order in appeal or otherwise in accordance with law. Ordered accordingly. The petition sands disposed of. 5. Aggrieved by the aforesaid order, the appellant filed a revision application which was disposed off by the impugned order holding untenable the petitioner s plea .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

id that the said amounts stood adjusted against the IATT dues from the carrier. It was further held as under: The respondent having failed to honour their commitments, cannot hide their inefficiency or incompetence (as revealed from their letter dt 21.12.98 (vis-a-vis Lufthansa) in reply to the 6 SCNs) and claim the deposits made by another as their own payments. The lessor are not a party to the instant proceedings. What they have paid was in accordance to the Court orders and cannot be appropr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

terated arguments similar to what was advanced by it all along in the authorities below. In addition, the learned counsel for the petitioner has stressed that M/s. Air U.K. Leasing Ltd deposited the amount of ₹ 12.5 crores although under the directions of this Court, in two transactions, i.e. ₹ 8 crores was paid by draft in the name of the Commissioner of Customs, Air Cargo Unit, New Delhi and ₹ 4.5 crores was in the form of a Fixed Deposit made on 10.4.96 which matured on 11.4 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

already been paid to the Government and the same stood appropriated under the proper account; hence there was no further requirement of payment to be made by the petitioner; (b) the amount of ₹ 12.5 crore although deposited by the Lessor, was a permissible mode of recovery of IATT dues as contemplated under Section 46A(4) of the Act read with Rule 14(4) of the eponymous Rules and (c) having recovered the said amount by the aforesaid permissible method, it was not open to the Revenue to in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ase, the Court is of the view that Section 42 of the Act fixes the tax liability on the carrier and while Section 43A imposes the interest between 20% and 30% for the delay in payment of the amount, the modes of recovery of unpaid amount is prescribed under Section 46A(4) of the Act. Section 46A (1) and 46A(4) read as under: 46-A(1) - Where the inland air travel tax or interest or penalty is not paid by a carrier or other person, as required under the provisions of sub-section (2) of section 42, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

case may be, and detain the same until the tax, interest or penalty so determined is paid; and in case any part of the tax, interest or penalty or of the cost of the distress or arrest or of the keeping of the aircraft or other property distrained or arrested, remains unpaid for the space of thirty days next after any such distress or arrest, may cause the said aircraft or other property to be sold and with the proceeds of such sale may satisfy the tax, interest or penalty and the costs includi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f the aircraft which had far greater value than the amount required to be paid for its release and de-registration from the authorities. Subsequently, the lessor had also sought refund of the said amount from the Government. However, the responsibility of the carrier to pay the IATT dues subsisted. The recovery is to be made from the carrier until tax, interest, penalty so determined is paid. The distrainment was only for the purpose of ensuring recovery of the monies then due. The monies deposi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version