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of <h1>Aircraft detention for tax recovery: Ownership, valuation, cooperation, and document access.</h1> <h3>Mumbai International Airport Private Limited and C.J. Leasing (Cayman) Ltd. and Anr. Versus Commissioner of Service Tax and Ors.</h3> Mumbai International Airport Private Limited and C.J. Leasing (Cayman) Ltd. and Anr. Versus Commissioner of Service Tax and Ors. - 2015 (40) S.T.R. 5 ... Issues:1) Detention of aircraft and helicopters for recovery of Service Tax amount due to the Government.2) Ownership status of the aircraft in question under financial lease.3) Appointment of government-approved auctioneer for the auction of the detained aircraft.4) Custody and charge of documents and records relating to the subject aircraft.5) Access to records and documents by the Service Tax Department.6) Valuation and disposal of the aircraft in accordance with the law.7) Rights and contentions of the third Respondent regarding the sale of the aircraft.Analysis:1) The judgment revolves around the detention of aircraft and helicopters belonging to a specific airline to recover Service Tax amounts owed to the Government. The focus is on one aircraft under financial lease, with the Commissioner seeking time to complete the sale and disposal process. The Commissioner's statements, based on records, are accepted as undertakings by the Court.2) The ownership status of the aircraft is crucial, being under financial lease. The Commissioner plans to appoint a government-approved auctioneer for the auction process, requiring submission of maintenance and audit records by the airline. The Court grants the requested time for valuation and auction preparations.3) The issue of custody and charge of documents and records related to the subject aircraft arises. The Service Tax Department seeks access to these materials to comply with undertakings given to the Court. The airline confirms the availability of records in various locations accessible to authorized personnel.4) The Court emphasizes the importance of access to records and documents, directing the airline to file a comprehensive affidavit clarifying the position within two weeks. Cooperation in handing over records and allowing valuation is expected, ensuring compliance with the law.5) Regarding the rights and contentions of the third Respondent, who owns the aircraft leased to the airline, the Court grants leave for access to documents once the Service Tax Commissioner takes custody. Any valuation reports provided by the third Respondent should assist in determining the upset price for the auction.6) Throughout the judgment, the Court ensures that all actions are in line with the law and no conflicting orders exist. The rights and contentions of all parties involved are considered, with provisions made to safeguard interests, particularly regarding the sale proceeds from the aircraft auction.
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