Aviation leader Jet Airways today said that authorities are investigating alleged service tax evasion by Sahara Airlines, which it had bought from Sahara Group, and asserted that any liability would be with previous owner.
"As per the provisions of the agreements (relating to sale of Sahara Airlines to Jet Airways) ..., the liability, if any, for the tax demands in respect of which the investigation are currently in progress rests with the earlier owners of the Sahara Airlines," the company said in a filing with the Bombay Stock Exchange.
Referring to investigation by Central Board of Excise and Customs (CBEC) into alleged service tax evasion, Jet Airways said the inquiry relates to the period prior to acquisition of Sahara Airlines by the company.
Jet Airways acquired the Sahara Airlines in April last year for Rs 1,450 crore after a protracted legal battle with Sahara Group over the delay in transactions. After the takeover, Sahara Airline was rechristened as Jetlite.
The Jet had communicated to stock exchanges in the wake of news reports that Jetlite had got a Rs 100-crore tax notice. Sahara Group officials, however, could not be contacted for their comments.
By Ms.Bobby Aanand, Metropolitan Jury.
"Loved reading this piece by Ms. Bobby Anand?
Join LAWyersClubIndia's network for daily News Updates, Judgment Summaries, Articles, Forum Threads, Online Law Courses, and MUCH MORE!!"