Vijay Mallya on Monday met Central Board of Excise and Customs (CBEC) chief SK Goel, with regard to de-freezing of Kingfisher Airlines' accounts. 

The CBEC had frozen 11 accounts of Kingfisher Airlines last week for allegedly defaulting on service tax that it has collected from passengers.     

SK Goel had said that Kingfisher owed Rs 110 crore towards service tax for the period of April-November.     

Mallya has promised to clear November service tax dues within a day, a Finance Ministry official said.     

"Vijay Mallya is seeking to resolve the issue and he will pay November service tax by Tuesday,” an official said requesting anonymity.     

The November service tax dues are estimated to be at Rs 10-15 crore.     

However, the chairman of Kingfisher refused to speak to waiting reporters at North Block after his meeting with Goel.     

According to sources, Mallya has also assured that the remaining service tax dues of the airlines will be cleared by March 31, 2012.

Service tax is an indirect tax which is imposed on services called "taxable services."

Many Indian carriers including state-run Air India are troubled by rising fuel costs and price wars emanating from intense competition causing worry about their survival to investors and government.

The Vijay Mallya-owned Kingfisher Airlines is desperately scouting for funds from potential investors and more cushion from its banks to keep it afloat.

Bank accounts for Kingfisher Airlines were frozen for two days in November as well, but were subsequently opened up after the airline promised to pay the dues.

Kingfisher, whose current debt stands at over 65 billion rupees, has a negative net worth.

It aims to cut debt to Rs 37.2 billion through sale and lease back of aircraft, sale of a property in Mumbai and conversion of rupee loans into lower interest foreign loans.

Meanwhile, another debt-ridden air carrier Air India on Monday paid Rs 8 crore towards service tax for the month of November, sources said.
     
As many as 11 bank accounts of Air India were frozen by the tax authorities for non-payment of service tax.
     
Its accounts were first frozen for two days in the first week of November and it was only after getting an assurance from the airline officials that they would deposit the dues in three installments the department withdrew its order.(PTI)