Supreme Court to Hear AAI Appeal on Service Tax Liability for Airport Services

The Supreme Court will hear next week the Airports Authority of India’s (AAI) appeal against a CESTAT order confirming its service tax liability on airport services provided to airlines under the pre-GST regime.

AAI has argued that certain charges levied on airlines are exempt and do not fall within the scope of “airport services” as defined under the Finance Act.

The outcome could significantly affect operational costs and pricing in the aviation sector. The case will turn on the interpretation of taxable services prior to GST implementation.