Service Tax Department asks Bombay HC to seize Vijay Mallya passport

The Bombay high court on Wednesday fixed March 11 for hearing a Service Tax Department’s plea to recover government statutory dues running into crores of rupees from Kingfisher Airlines chief Vijay Mallya and other directors.

The department’s petition also requested the court to impound Mallya’s passport and put restriction on his travel abroad.

Advait Sethna on behalf of Service Tax Department mentioned the petition before Justice C.V. Bhadang who asked him to mention the petition on Friday (March 11) and the court would hear it that day.

Service Tax Department in its petition has alleged that Mallya had collected huge sums of money as service tax on behalf of the government from passengers travelling by Kingfisher Airlines but he and other directors (of the Airlines) had not deposited the amount in government treasury.

The court was informed that the department had learnt from media reports that Mallya was planning to go abroad because his term as a Rajya Sabha MP expires on June 30. The department apprehended that Mallya may not return from abroad and requested that high court should ensure Mallya’s presence before it until department’s plea was decided and also until the trial in a magistrate’s court for recovery of service tax was over.

The department had informed the court that it had filed two cases against Mallya in a Magistrate court where the admitted liability of Kingfisher Airlines in respect of service tax dues was Rs 32.68 crores and Rs 23.38 crores respectively for different periods.

The HC was further informed that the first case is being heard and the other one was still pending.

The Department pleaded the total disputed liability of Mallya in respect of service tax was to the tune of Rs 535 crores, although admitted liability was Rs 56.06 crore (Rs 32.68 crore and Rs 23.38 crore).

Attorney general Mukul Rohatgi said Mallya had left India on March 2 itself.