FREQUENTLY ASKED QUESTIONS (FAQs)
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1 FREQUENTLY ASKED QUESTIONS (FAQs) Sale of Aircraft Airbus A CJ A319 VT-VJM VJM (MSN 2650) through e e-auction Page 1 of 8
2 1.0 e-auction Details & Registration: 1.1 What is e-auction/auction Catalogue? - eauction/auction Catalogue is the document which specifies the applicable terms & conditions, auction procedure, schedule of events, payment structure, technical details & photographs of the Item/Aircraft for sale of the same. 1.2 What is e-auction Number for Sale of Aircraft? - e-auction Number for sale of Aircraft Airbus A CJ VT-VJM (MSN 2650) is MSTC/WRO/SERVICE TAX-V COMMISSIONERATE, MUMBAI/2/Bandra (East)/16-17/ Where will I find e-auction Catalogue? - You can access e-auction Catalogue through below Website Link: The bidders registered with MSTC can view the e-auction catalogue through link Forthcoming Auction available in his login home page. 1.4 Where will I find General Terms & Conditions (GTC) & Buyer Specific Terms & Conditions (BSTC)? - General Terms & Conditions (GTC) & Buyer Specific Terms & Conditions (BSTC) are required to be agreed by the bidder at the time of online registration on MSTC Website: You can view General Terms & Conditions by clicking on Register link available on above portal and by clicking on Register as Buyer link one can view Buyer Specific Terms & Conditions. You can access General Terms & Conditions through below Website Link: You can access Buyer Specific Terms & Conditions through below Website Link: Do I need to register with MSTC LTD. for participation? - Yes. Registration as a Bidder with MSTC LTD. (A Govt. of India Enterprise) is compulsory for participating in e- Auction scheduled for sale of Aircraft. 1.6 How can I register with MSTC Website as a Bidder? - Bidder can register with MSTC by completing online registration (Stage-I) through Website: and by submitting KYC/Registration documents & registration fee (Stage-II) at any MSTC office. - Online Registration (Stage I) Procedure can be done as per procedure available on below Website Link: - List of required KYC/Registration Documents can be viewed through below Website Link: Who is the Seller of the Aircraft? The DEPUTY COMMISSIONER OF SERVICE TAX, DIVISION-II, SERVICE TAX-V, MUMBAI, representing the Service Tax Department through the Commissioner of Service Tax - V, Mumbai is the seller of the Aircraft. 1.8 What is Pre Bid EARNEST MONEY DEPOSIT (EMD)? - Pre Bid EARNEST MONEY DEPOSIT (EMD) is the amount required to be paid for participating in the e-auction. - Intending bidder has to submit pre-bid EMD as under: a) For Indian Bidder: Pre-bid EMD of Rs. 1,00,00,000/-(Indian Rupees One Crore only) b) For Foreign Bidder: Pre-bid EMD of USD 1,52,000 (US Dollars One Hundred Fifty Two Thousand only) Page 2 of 8
3 The Pre Bid EARNEST MONEY DEPOSIT (EMD) amount submitted by successful bidder will be adjusted with Postbid EMD and for unsuccessful bidder pre-bid EMD will be returned within 3 (three) days from the close date of e- Auction. 1.9 Bank details of MSTC LTD for making the payment? - Bidder can make payment through RTGS, NEFT or SWIFT Transfer to the bank accounts of MSTC as per the bank account details given below: a) For payment in USD: Bank of India, New York Branch (SWIFT BKID US33) for credit to RFC account at Mumbai Overseas Branch with Cayman Island for ultimate credit to account No of MSTC Ltd. with Bank of India, Kolkata Overseas Branch (SWIFT BKID IN BBCOS). b) For payment in INR: Name of the beneficiary: MSTC Limited A/c Number: Banks Name: Bank of India Branch Name: Nariman Point Branch Centre: Mumbai Bank IFS Code: BKID What is the schedule for important activities for participating in e-auction? - Due date/ Duration of important activities is as under : Activity Period / Due Date Registration with MSTC LTD Ongoing process, expected that bidder should complete well in advance. Inspection of Aircraft documents FROM TO Physical Inspection of the Aircraft FROM TO On or before Date: Time: 16:00 hrs IST Due Date for submitting pre-bid Bidder shall ensure that the same must be credited to EMD & Annexure A MSTC Bank account on or before Date: Time:16.00hrs IST Starting Date & Time ::15:30:00 hrs IST Date of e-auction Scheduled Closing Date & Time ::22:30:00 hrs IST 1.11 Who will be the contact person for registration & inspection? Activity Contact Person 1. Mr. Ganesh Yadav, Manager Tel: / Cell: ganeshyadav@mstcindia.co.in Registration with MSTC LTD: 2. Mr. Vikas Agrawal, Jr. Executive Tel: / Cell: vagrawal@mstcindia.co.in 1. Mr. Ganesh Yadav, Manager Submission of Inspection Fee: Tel: / Cell: ganeshyadav@mstcindia.co.in Step 1: Request with required time slot may be sent to Mr. Ganesh Yadav, Manager ganeshyadav@mstcindia.co.in Inspection of Aircraft documents: Step 2: After getting confirmation on request then contact : Location: NEC HANGAR, AIR INDIA LIMITED, BAMANWADA, VILE PARLE(EAST), MUMBAI Page 3 of 8
4 Physical Inspection of the Aircraft: For Technical Query / Assistance: Contact Person: Mr. Pankaj Tripathi, Inspector of Service Tax Contact No.: stvdivii@gmail.com Step 1: Request with required time slot & scan copy of documents may be sent to Mr. Ganesh Yadav, Manager ganeshyadav@mstcindia.co.in Step 2: After getting confirmation on request then contact along with original documents : Location: Near Domestic Terminal 1B, Behind Police Station, Pass Section, Counter No.1 The Gate-pass arrangement: Mr. Manoj Chavan, Cell No.: manoj.chavan@gvk.com For any other assistance: Mr. Gambani, Supdt. of Service Tax, Cell: Post to: stv.aircraftqueries@gmail.com which would be replied through the Technical Advisor i.e. M/s Air India Engineering Services Ltd(AIESL) appointed by the Service Tax Department How much inspection fee has been prescribed for inspection of Aircraft records? - There is no inspection fee for inspection of Aircraft records 1.13 How much inspection fee has been prescribed for inspection of Aircraft? -. The inspection fee for inspection of Aircraft is USD 800 (Foreign bidder) / INR 50,000 (Indian bidder) 1.14 Where is the Aircraft presently parked? - The Aircraft is parked at Lima Bay, Mumbai Airport 2.0 Process flow of Aircraft Sale through e-auction: Registration with MSTC LTD Inspection of Aircraft Documents Submission of Inspection Fee to MSTC LTD Physical inspection of the Aircraft Submit Pre-Bid EMD amount to MSTC LTD Participate in e-auction Close of e-auction Page 4 of 8
5 NO Is your bid highest? YES MSTC LTD will refund your pre-bid EMD amount Decision from Service Tax Department NO Is your bid approved by Service Tax Department? YES Submit post-bid EMD amount to MSTC within 5 days from the date of approval of sale by the Service Tax Department Issue of Sale Certificate by Service Tax Department Submit Balance Amount & Taxes and MSTC Service Charges to MSTC LTD within 10 days from the date of issue of Acceptance Letter / Sale Order by MSTC Issue of Delivery Order by MSTC Collect Bill of Sale & take delivery of Aircraft from Service Tax Department 3.0 Bidding: 3.1 How to place a bid? - Bidder who has registered with MSTC & submitted the pre-bid EMD amount with MSTC can participate in e- Auction. - Bidder has to submit his bid in USD currency only. - Registered bidders can submit the bid through their login as under: Step 1 : Click on View details Step 2 : Select Category Aircraft Step 3 : Click on Live Auction Step 4 : Click on eauction No. MSTC/WRO/SERVICE TAX-V COMMISSIONERATE, MUMBAI/2/Bandra (East)/16-17/5594. Step 5 : Type your desired amount in text box provided under column head Your Bid in USD/Unit. Please note that your bid must be more than minimum 1000 USD from Last Bid. Step 6 : Click on Bid button. Page 5 of 8
6 - Sample screen-shot of live e-auction is as under: 3.2 In case of any technical assistance / query during bidding to whom should I contact? - For any technical assistance / query for bidding you can contact the following officials of MSTC LTD: 1. Mr. Ganesh Yadav, Manager Tel: / Cell: ganeshyadav@mstcindia..co.in 2. Mr. Nitin Anand, Asstt. Manager Tel: / Cell: ganeshyadav@mstcindia..co.in 4.0 Aircraft Delivery: 4.1 How much time period is provided to the buyer for lifting/removal of the Aircraft? - The buyer should ensure the lifting/removal of the Aircraft within a period of 21( (Twenty Ones) days from the date of issue of "Sale Certificate" by Service Tax Dept. 4.2 The time period provided to the buyer for lifting/removal of the Aircraft appears to be short. Where can I move the Aircraft after obtaining the Sale Certificate? - The buyer can move the Aircraft immediately to NEC Hangar, Air India. The buyer can contact Shri B. K. Satapathy, Deputy General Manager, Air India Engineering Services Ltd at bk.satapathy@airindia.in or regarding the applicable towing charges, parking charges, hangarage charges. 4.3 What are the charges/taxes/duties expected to be paid by the buyer on account of sale of the Aircraft? - The buyer needs to pay the MSTC Service of the 'bid amount' (including service directly to MSTC - The buyer needs to pay of the bid amount. The foreign buyer may claim refund of VAT on account of export of the Aircraft by following the procedure prescribed by the Sales Tax Department, Government of Maharashtra. - The buyer needs to pay the requisite Stamp duty. 4.4 How to part out Aircraft at Airport? - Permission is required from MIAL (i.e. Airport operator). No permission is required from the Directorate General of Civil Aviation, Government of India(DGCA). - Airport entry passes need to be sponsored by local agency like Maintenance, Repair and Operations(MRO), Airlines, ground handler or if neededd can be recommended by the Service Tax Department. Page 6 of 8
7 - The Mumbai airport operator i.e. MIAL ordinarily issues only 3 days passes which would need to be renewed after every three days. The renewal of the passes every third day may be time consuming. - For long term passes, all foreign citizens are required to produce their passport copy, Indian immigration stamp copy, 2 passport size photographs and require security clearance which normally takes few weeks. After that they can be issued passes for longer period i.e. one month. - Thus parting out at MRO hangar may be very convenient and better option as the passes are issued by Hangar owner (e.g. Air India) so that there is no loss of man days and efforts in getting passes renewed every third day. - Further, it will be also very easy to temporarily store the items after part out, pack and ship out the parts as movement of carpenter; trucks etc. will be very easy. - In any case, it may be noted that as per the Clause of the Seller's Terms and Conditions already uploaded in the MSTC website, the successful buyer is expected to remove the Aircraft from the airport within 21(Tewnty One) days from the date of issuance of the Sale Certificate. 4.5 Will there be any legal tangles once I buy the aircraft and will some one stake claim that they have rights on the aircraft? - There will be no legal tangles upon purchase of the Aircraft as the auction process has been initiated as per the orders of the Hon'ble Bombay High Court enclosed in the e-auction catalogue. As per the available records, so far no claims have been made on the Aircraft except by MIAL and C J Leasing(Cayman) Ltd. 4.6 Do I have to settle any of the past dues which the aircraft has accumulated on itself? - The buyer is not expected to settle any past dues accumulated on the aircraft. 4.7 Do I need to get permission to tow the aircraft from the aircraft bay to hangar for tear down, if so what are the requirements to be fulfilled? - Permission needs to be taken from MIAL(Airport operator) as the same may involve replacing of the wheels. 4.8 Will we be able to give a ground run on the aircraft to check the engines? - The Aircraft is not under maintenance preservation and there is no current CFA. The aircraft needs to be serviced to enable the engine run. Please note that the aircraft is being auctioned on "As Is Where Is, As Is What Is, Whatever There Is and No Complaint" basis. No functional check or ground run is part of the deal. 4.9 Who can inspect aircraft? - Authorised representative of Bidders alongwith their technical advisors may inspect the aircraft. Representatives should submit a letter of authority along with their identity proof to MSTC. MIAL will only accept a request for inspection which is routed through MSTC. Representatives of bidders should be accompanied by STA officials and Air India Engineering. Services Ltd(AIESL) officials How can one get entry into Mumbai Airport/ CSIA to inspect the aircraft? - Please submit identity documents and 2 passport size photographs for obtaining entry pass as specified in e- Auction Catalogue. Please provide the exact date and time for which the pass is required alongwith the proof/ identity. Entry passes to the Mumbai Airport/ CSIA will be valid for 24 hours. The cost for issue of Airport Entry Pass is Rs. 75/-. Please confirm that the pass is issued prior to your visit What is the transportation facility available from Airport Entry point to the Lima bay where the Aircraft is parked? - Vehicles of ground handler Celebi Nas Airport Services India Pvt. Ltd. ply between the entry point and parked aircraft as per prefixed appointed time. The same can be arranged on payment of approximately Rs.3,200/- (plus service tax) for drop and pick up. Page 7 of 8
8 5.0 Technical and other queries: 5.1 Where can I find the summary of Technical and Maintenance records of the Aircraft? - The summary of Technical and Maintenance records is available at the following link: - Additional details prepared by the Technical Advisor i.e. M/s Air India Engineering Services Ltd(AIESL) are available at the following link: Since when the Aircraft is not under maintenance? - The Aircraft is not under maintenance for more than 3 years. 5.3 Where can I find the photos of the Aircraft? - The photos of the Aircraft are available at the following link: Is the Borescope inspection report for the engines available? -The BSI reports would be made available in the eauction catalog. Page 8 of 8
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