Rule 3 of Inland Air Travel Tax Rules, 1989 ( hereinafter referred to as the said rules), shall be renumbered as sub-rule (1) thereof, and after sub-rule (1) as so renumbered, the following sub-rule shall be inserted, namely:-

“ (2). The amount of tax collected under sub-rule(1) shall be indicated separately by the carrier on the ticket issued to a passenger or his agent for embarking on inland journey.”. 

in sub-rule (2), for the words “ amount specified in the notice”, the words “ amount of tax specified in the notice and the interest, if any, payable thereon” shall be substituted;

in sub-rule (3),  for the words  “ the amount so determined”,  the words “ the amount of tax so determined and the interest, if any, payable thereon” shall be substituted.

for the words “ sixty days” , the words “ thirty days” shall be substituted;

For rule 7 of the said rules,  the following rules shall be substituted, namely:- 

“ 7.  Return regarding tax collected, etc.– Every carrier required under rule 6 to pay the tax into the treasury shall file, in respect of every month before the expiry of thirty days from the end of that month, before the Collector of Customs, a return in the Form annexed to these rules, showing the amount of tax collected, amount refunded and the amount paid into the treasury:

        Provided that the Collector of Customs may, having regard to the number of flights operated by a carrier may exempt such carrier from filing Part-B of the said Form.

7A. Filing of Passengers’ manifest.- The Collector of Customs may require a carrier authorised under sub-section (2) of section 42 of the Act to file a copy of the passengers’ manifest in such form, in such manner and before such officer, as may be specified by him, in respect of each flights carrying passengers on an inland journey.”.

In rule 8 of the said rules, after the words  “ or other document was prepared”,  the following words shall be inserted, namely:- 

“ and such challlan, voucher, return or other document shall be produced before an officer of customs as and when required to do so.”

Any carrier who fails to indicate the amount of tax collected on the ticket issued to a passenger or his agent shall be liable to a penalty of rupees five hundred for each such ticket where the amount of tax has not been indicated.

Any carrier who fails to file a return showing the amount of the tax collected, amount refunded and the amount paid in the treasury in the manner as specified under rule 7 shall be liable to a penalty which shall not be less than rupees two thousand but which may extend to rupees twenty thousands and to a further penalty not exceeding rupees five hundred for each day after the date when the return was due to be filed in accordance with the provisions of the said rule. 

Any carrier who fails to file a copy of the passenger’s manifest in the manner required under rule 7A  shall be liable to a penalty which shall not be less than rupees two thousand but which may extend to rupees twenty thousand and to a further penalty not exceeding rupees five hundred for each day after the date when manifest was due to be filed in accordance with the provisions of the said rule.”

After rule 11 of the said rules, the following rule shall be inserted, namely:-

“        11A.  Deposit, pending appeal of tax and interest demanded or penalty levied.- Where any appeal under rule 11 relates to any tax and the interest, if any, payable thereon, or any penalty levied under the Act or these rules, the person desirous of appealing against such decision or order shall, pending the appeal, deposit with the Assistant Collector of customs, the tax demanded and the interest, if any, payable thereon, or the penalty levied:

          Provided that where in any case the Collector ( Appeals) is of the opinion that the deposit of tax demanded and the interest, if any, payable thereon, or the penalty levied would cause an undue hardship to such person, the Collector (Appeals) may dispense with such deposit subject to such conditions as he may deem fit to impose so as to safeguard the interests of revenue.”.

For rule 14 of the said rules, the following rule shall  be substituted, namely:- 

Where any tax interest or penalty is not paid by a carrier, the Assistant Collector of Customs may, after the tax, interest or penalty has been determined under the rules, proceed to recover the amount of said tax, interest or penalty by one or more of the modes specified in sub –rule ( 2), sub-rule (3)   or sub-rule (4) .

The Assistant Collector of Customs may require any person, from whom any amount is due to the carrier, to deduct the tax, interest or penalties so determined from the said amount and such person shall comply with the requisition by the Assistant Collector of customs and shall pay the amount so deductive to the credit of the Central Government:

         Provided that nothing in this sub-rule shall apply to any part of the amount exempt from attachment in execution of a decree of a civil court under section 60 of  Code of Civil Procedure, 1908 (5 of 1908). 

The Assistant Collector of Customs may prepare a certificate signed by him specifying the amount due and send ed to the Collector of the District in which the carrier owns property or resides or carries on business and the said Collector, on receipt of such certificate, shall proceed to recover from the said carrier or other person, the amount is specified hereunder as if it were an arrear of land revenue. 

On a specific authorization being granted by the Collector of Customs, the Assistant Collector of Customs may distrain or arrest any aircraft and any other property belonging to , or under the control of , the carrier and detain the same until the tax, interest or penalty so determined is paid; and in case any part of the tax, interest or penalty or of the cost of the distress  or arrest or of the keeping of the aircraft or other property distrained or arrested, remains unpaid for the space of thirty days next after any such distress or arrest, may cause the said aircraft or other property to be sold and with the proceeds of such sale may satisfy the tax, interest or penalty and the costs including the cost of sale remaining unpaid, and shall render the surplus, if any, to the carrier.

For the Form annexed to the said rules, the following Form shall be substituted, namely:-