Mangalore, Aug 12: Commissioner Dr M Subramanyam in a press release stated that, the amount of Rs 51 lakh service tax collected was retained by a service provider for more than six months on date over without remitting to the exchequer.
It is also stated that Andhra Pradesh based service provider having business at Karwar has been escaping from the investigating officers for several months.
Managing Director of a private limited company providing storage and warehousing services at Karwar has been arrested by officers of the Commissionerate of Central Excise and Service Tax, Mangalore for collecting the service tax of over Rs 60 lakh from August 2011 to March 2014 and not remitting it to the governments account.
After a petition was filed before the High Court for issuance of a non bailable warrant to secure his presence, he appeared before the officials.
According to the officials, the service provider has been evading tax for three years. In spite of providing taxable services since August 2011, the service provider has failed to obtain the registration certificate till February 2013.
The release also that, the accused was not even complying with the basic statutory requirements like filing of returns, intimating the taxable services provided, discharging appropriate service tax liability, remitting the service tax collected to the government’s account.
As per the law, Section 89(1) (d) of Finance Act 1994, whoever collects service tax more than Rs 50 lakh and fails to credit the same to the government within six months from the day on which such payment becomes due, is liable for imprisonment for a term which may extend to seven years.
Hence, under Section 91 of the Finance Act 1994, the service provider was arrested and was produced before Principal Civil Judge Senior Division and Chief Judicial Magistrate, Mangalore and was remanded him to judicial custody.