Supreme Court sets aside Saudi Airlines penalty over foreign travel tax delay
The case concerns an appeal by Saudi Arabian Airlines against a High Court judgment that upheld penalties and interest imposed by the Union of India for delayed payment and short payment of Foreign Travel Tax (FTT). The core issue is whether a mere delay in depositing the tax constitutes a 'failure to pay' that attracts mandatory penalties under Section 38(3) of the Finance Act, 1979.
Petitioner/Appellant: M/s. Saudi Arabian Airlines; Respondents: Union of India & Ors.; Bench: Justice Ujjal Bhuyan.
- The Supreme Court set aside the penalty imposed on Saudi Arabian Airlines.
- The Court held that mere delay in depositing Foreign Travel Tax is not the same as 'failure to pay' under Section 38(3) of the Finance Act, 1979.
- The Court reversed the High Court's dismissal of the writ petition filed by the airline.
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Document details
| Official title | Mere Delay In Depositing Foreign Travel Tax Not Same As 'Failure To Pay' : Supreme Court Sets Aside Penalty On Saudi Airlines |
| Source body | Supreme Court of India — orders & judgments |
| Reference number | — |
| Status | closed (order) |
| Year | 2026 |
| Closing date | — |
| Documents | 1 |