 "Vijay Mallya")
The service tax department is planning to auction liquor baron Vijay Mallya's Airbus A319 jet to recover over Rs 370 crore in dues and penalty.
The department has made the submission in that regard in an ongoing writ petition in the Bombay High Court. During a recent hearing, the court observed that there is no legal challenge or lessor objection to the auction and asked Kingfisher Airlines to make its stand clear on the service tax department's plea.
Mallya's Airbus jet, which carries the registration VT-VJM matching his initials, was manufactured in 2006. It was acquired and registered with the Directorate General of Civil Aviation in the same year. It can seat 22 passengers plus two crew. The aircraft is owned by C J Leasing (Cayman) Ltd and is on a financial lease with Kingfisher.
An Airbus A319 aircraft with a standard specification has a current list price of $ 88.6 million. Aviation experts say Airbus A319 corporate jets could cost $70-90 million depending on the customisation and interiors. The value of the aircraft flown by Mallya would be lower as it was manufactured ten years ago.
Mallya's personal jet, five ATR planes and two helicopters, were impounded by the service tax department in 2013. The airline's dues had been pending since 2011 and it was making paltry payments to the department. At the time of detention in 2013 Kingfisher had questioned the service tax department action arguing the airline was merely an operator of A319 aircraft and not owner.
A UB Group spokesperson did not comment on the matter.
