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HC rejects Jet's plea over Indland Air Travel Tax
Press Trust of India / New Delhi Aug 14, 2009, 18:10 IST

The Delhi High Court has rejected a petition by Jet Airways challenging a penalty of close to Rs 44 lakhs imposed on the airline by the government for a delay in submission of Indland Air Travel Tax (IATT) collected from passengers.

A division bench comprising Justice A K Sikri and Justice Valmiki J Mehta dismissed Jet's submission that IATT collected from passengers in January, 2002 was not deposited on time due to some financial difficulties.

"We do not have any discretion to waive it," the bench said.

The court also rejected the carrier's submission that the officials imposed the penalty of Rs 43.50 lakh wrongfully saying, IATT rules do not have such provisions.

Jet Airways had challenged imposition of a little more than Rs 3.33 lakh as interest and Rs 43.50 lakh as penalty by the Ministry of Finance over late payment of IATT collected from its passengers for the month of January 2002.

Jet Airways had collected Rs 26.70 crore as IATT for the said period. However, it deposited only Rs 24.53 crore in the government's account within the stipulated period of 15 days, mentioned in the Finance Act.

As per the sectoral regulations, a carrier is required to collect 15 per cent of the fair paid by the passenger as IATT and deposit it in the government exchequer within 15 days.

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