The Service Tax Department has put a corporate jet belonging to the now-defunct Kingfisher Airlines Ltd on the block to recover its dues. According to reports, the airline owes ₹32.68 crore in service tax that was collected from passengers.
Luxury aircraft The office of the Commissioner of Service Tax said the aircraft A319 is “exclusively designed for exotic and luxury use”. The aircraft has attractive exterior and interior layout and design. It has the capacity to seat 25 passengers and accommodate six crew members.
The move to put the aircraft on the block comes at a time when banks that have lent to the airline failed in their attempt to sell Kingfisher House, near Mumbai Domestic Airport, with no bids coming in.
Market experts said the ₹150-crore reserve price for the property had proved to be the dampener. KFA owes close to ₹9,000 crore to a consortium of 17 banks led by State Bank of India.