Bangalore: The Karnataka High Court on Saturday dealt a severe blow to Vijay Mallya, Chairman and MaÂnaging Director, Kingfisher AirliÂnes Ltd, by refusing to quash a criminal case against him filed by Income-Tax Department for not remitting the tax deducted at source from employees’ salaries to the government. The Special Court for Economic Offences had issued summons to Mallya, against which he had approached the high court. Justice H.N. Nagmohan Dad dismissed the petition filed by Kingfisher Airlines.
In his plea before the high court, Mallya, represented by KinÂgfisher Airlines, had sought to quash the criminal case. The Special Court had issued the summons against Mallya after taking cognisance of the offence under Sections 276B and 278B of the I-T Act, 1962, for not remitting Rs 74.94 crore deducted as TDS in 2009-10 fiscal year, and Rs 23.70 crore imposed as interest for not meeting the stipulated deadline for the payment.
The I-T department had filed a criminal complaint against the airline and Mallya, and also complained that Kingfisher owed the government Rs 401 crore as TDS amount, deducted from salaries of its employees and from payments made to others between financial years 2008 and 2012.
The high court also admitted a winding up petition filed against Kingfisher Airlines. The court has admitted the petition filed by a consortium of banks led by State Bank of India following the creditors’ claim that the company was commercially insolvent, is bonafide and hence unable to pay off its dues.
Relief for lorry operators Several lorry operators, transporting iron ore, in the state heaved a sigh of relief, as the Karnataka High Court on Saturday struck down the state government’s 2010 order to levy toll. As per the order, a fee of Rs 500 was charged per vehicle per trip, carrying more than 16 tonnage of weight on the national highways in the state. However, vehicles carrying machinery, irrespective of axle weight limit, were exempt.
The state had on July 1, 2010 had issued orders to levy toll, which several lorry operators had challenged on the ground that it was contrary to the provisions of the Karnataka Highways Act 1964 and the Karnataka Highway Rules 1965.
However, while allowing the plea of the lorry transporters, the high court has made it clear that the state government need not return the toll amount collected by it since 2010 to the lorry transporters.
“The state is empowered to collect toll under Sec 48A of the Karnataka Highways Act 1964 read with sec 17A of the Karnataka Motors Vehicles Taxation Act 1957. The Karnataka Highway Act (amendment) 2010 provides for levy and collection of toll fee from the user of highway for service,” state had argued.
The state had also clarified in its objection that iron ore tonnage weight has been taken into consideration for imposing levy of toll, which is neither discriminatory nor arbitrary.
