Central Government notifies M/s Alliance Air Aviation Limited as 'Designated Indian Carrier' under Central Sales Tax Act [Read Notification]

The Central Government vide notification S.O. 3252(E) published on 20th July 2023 has notified that M/s Alliance Air Aviation Limited having its registered office at Alliance Bhawan, Domestic Terminal-1, Indira Gandhi International Airport New Delhi – 110037 as “designated Indian carrier”.

The notification states that “In exercise of the powers conferred by sub-section (5) of section 5 of the Central Sales Tax Act, 1956 (74 of 1956), the Central Government hereby specifies M/s Alliance Air Aviation Limited having its registered office at Alliance Bhawan, Domestic Terminal-1, Indira Gandhi International Airport New Delhi – 110037 as “designated Indian carrier” for the purpose of the said sub-section.”

The Section 5 of Central Sales Act states when a sale or purchase of goods is said to take place in the course of import or export. According to Section 5(5), “Notwithstanding anything contained in sub-section (1), if any designated Indian carrier purchases Aviation Turbine Fuel for the purposes of its international flight, such purchase shall be deemed to take place in the course of the export of goods out of the territory of India.

Explanation — For the purposes of this subsection, "designated Indian carrier" means any carrier which the Central Government may, by notification in the Official Gazette, specify in this behalf.

Thus, on behalf of the Section 5(5) of the Central Sales Tax Act, the government has notified M/s Alliance Air Aviation Limited as ‘Designated Indian Carrier’.

A "Designated Indian Carrier" refers to an airline company or carrier that has been officially recognized and authorized by the government or relevant authorities of India to operate flights to and from specific international destinations.

This designation allows the carrier to provide air transportation services on specified routes and fulfill certain regulatory requirements. Being designated as an official Indian carrier grants the airline certain rights and privileges, including access to international airports and the ability to establish codeshare agreements with other airlines for enhanced connectivity.

To Read the full text of the Order CLICK HERE

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