Jet Airways has already terminated the contracts of 50 of its expatriate pilots as part of cost-cutting measures.
After posting a loss of more than Rs 1802 crore Q4 loss, in another jolt, the private aviation company Jet Airways received a recovery notice of Rs 58 crore from the service tax department of the Mumbai Commissionerate.
The service tax department also sent a penalty notice of Rs 34 crore to the Jet Airways for not paying the amount on time.
The action was taken after a probe of Directorate General of Central Excise Intelligence (DGCEI) which found that the aviation company should pay Rs 1200 crore as a service tax.
The department sent five notices to the Jet airways.
According to the probe did by DGCEI, the aviation company runs a passenger and cargo services outside the country. The company also hired foreign aircraft from other companies and made payment in foreign currency.
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To provide services to foreign clients, the aviation-giant offered its aircrafts to foreign company on lease. These services come under Finance Act 1994 but the company did not pay any tax so far.
After the probe report of the DGCEI, the service tax department sent a notice to the aviation company.
Focus News tried to contact the Jet Airways on the issue but did not receive any response so far.