Mukesh Ambani’s non-scheduled airplane charter service has run into octroi turbulence.
Mukesh Ambani’s non-scheduled airplane charter service has run into octroi turbulence. Ambani’s Reliance Commercial Dealers Limited (RCDL), which operates the air transport passenger service, has moved Bombay High Court challenging the octroi notices issued by the BMC for the import of two aircrafts.
RCDL purchased a Falcon 900EX and an Airbus 319, valued at about Rs400 crore, in November last year. In August, the BMC issued RCDL two notices stating that since they imported the aircrafts they were liable to pay octroi on entry of the aircrafts within the municipal limits of Mumbai. BMC asked RCDL to furnish relevant import documents including receipts of customs duty paid to compute the octroi duty that
should be levied.
RCDL has now dragged BMC tocourt claiming that its demand for octroi is illegal.
RCDL has argued that if octroi is levied, it would lead to imposition of substantial financial burden. RCDL stated, “Amounts to an unreasonable restriction on right to carry on trade and business.” On Monday, BMC lawyer Anuradha Joshi sought time to file a reply. The matter has been adjourned to January 2009.
RCDL has stated that its aircrafts fly in and out of Mumbai at regular intervals and are not used or consumed within the municipal limits. The entry of the aircraft into Mumbai is transitory.
The petition pointed out that both the aircrafts were imported at New Delhi where their bills of entry were also filed. Both aircrafts registered with the Central government (Director General of Civil Aviation) at New Delhi. Thus the petition raises the question: Whether an aircraft registered at Delhi can be charged octroi in Mumbai?
In 2001, Jet Airways had filed a similar petition in the HC. Anil Ambani’s Reliance Transport and Travels Pvt Ltd, which has imported a Global 5000 Bombardier and a Falcon-7X, is also reportedly under the BMC scanner.
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