The company owes Rs 32.68 crore as service tax from the tickets sold to passengers of Kingfisher Airlines between April 2011 and September 2012
Auction of private jet, which once flew fugitive business tycoon Vijay Mallya, by the service tax department is set to be delayed further, after the fourth attempt for auction did not attract any bidder.
The Bombay High Court was last week informed a fresh attempt will be made only after receiving a green signal from the Karnataka High Court, which has ordered the winding up of Kingfisher Airlines and its parent company, United Breweries Holding Ltd.
The Airbus 319, which can carry 25 passengers and about six crew members, was attached by the department to recover its dues and is presently is lying in a hangar at Chhatrapati Shivaji International Airport.
The company owes Rs 32.68 crore as service tax from the tickets sold to passengers of Kingfisher Airlines between April 2011 and September 2012.
Additional Solicitor General, Anil Singh, told the high court that a fresh auction will have to be conducted, but before that they will ascertain the legal position and only if advised would go and seek leave as insisted upon in the communication of the Assistant Official Liquidator appointed by the Karnataka HC.
Last trade, the Bombay High Court had asked the service tax department to revalue the base price of the aircraft. Earlier, the court had allowed successful bidder SGI Commex Ltd's to the auction sale to withdraw his bid from the auction. The department had moved the high court seeking to recall its order allowing the sale to SGI Commex Ltd's as the successful bidder.
It was said that bidder's offer price is 81.08% below the reserve price, and thus as per the draft disposal manual it cannot be allowed to have such lower price auction. The maximum lowest bid allowed is up to 20% below the base price.
The high court, while posting the matter for further hearing in June, said, "We hope and trust that in the meanwhile both sides would obtain the necessary directions and proceed with the e-auction at least with the leave of that court and with the intervention of the official liquidator attached to that high court, same arrangements would be made to shift the aircraft."
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