AAI directed to high court for ruling on airport services tax

Andrew Pentol

Print Article E-Mail Article

Supreme Court refuses to issue vacation of stay order on levy of tax

The Supreme Court of India has directed Airports Authority of India (AAI) to the Madras high court to obtain a vacation of stay order on the levy of tax on airport services.

Several licensees have challenged AAI’s levy of sales tax in courts across India. The authority has also sought the transfer of petitions to the Delhi high court, but the court refused, saying AAI should go to the Madras high court for a ruling.

AAI claimed that a stay on the levy of service tax would make it difficult to recover because the shops, developed and maintained by AAI, had been leased out for fixed periods.

AAI levied service tax on the licensees for airport services such as those provided by airlines, cargo and passenger handling and transit facilities.