A case of service tax evasion to the tune of Rs 75 lakh has been registered against Creative Constructions in Nigdi by the anti-evasion wing of the Central Excise and Service Tax Commissionerate.
The proprietor of the firm,who is a civil engineer by profession,has been placed under arrest as per the provisions of newly introduced section 91 of the Finance Act,1994 for his role in causing loss to the government exchequer, said a release issued by Rajan Chaudhary,Additional Commissioner,Central Excise and Service Tax.
It added,Investigations have revealed that the company,over the past five years,had collected service tax amounting to over Rs 50 lakh from its clients and customers but failed to deposit it into the government account.
An officer said that any firm or individual who collects service tax in excess of Rs 50 lakh but fails to deposit it into the governments account beyond six months can be imprisoned for up to 7 years. This is the first case in Pune division in which arrest has been made. Further investigation is on, he said.