Ahmedabad: DGCEI detects Rs181cr tax evasion in ’11-’12

The A’bad zonal unit of the Directorate General of Central Excise Intelligence (DGCEI) has detected in all service tax evasion of Rs181.22 crore during the year 2011-12 (up to December 2011). So far Rs76.38 crore has been recovered against the evasion.

Of the total evasion detected, evasion by 15 companies was found in the last four months. Some of the names include Petronet LNG, United Phosphorus Ltd and Cadila Pharmaceuticals etc.

A service tax evasion of Rs3.77 crore was detected from Petronet LNG which had paid commission to its bankers to obtain external commercial borrowings. But the company failed to pay the service tax payable on it. A tax evasion of Rs3.38 crore was demanded from United Phosphorus, Bharuch which wrongly availed the CENVAT credit of service tax paid on banking services.

In case of Cadila Pharmaceuticals, Dholka, the company had taken the services of air travel agents, consultants etc from its foreign service providers and paid them for the fares. However, it failed to pay the service tax on the same under the reverse charge mechanism. The matter is still under investigation. Earlier the company had voluntarily paid service tax of Rs37,51,929 for an exemption it had wrongly availed.