Revenue agencies crack down on tax evasion

August 17th, 2009 by admin

To ease pressure created by mounting subsidy bills, various revenue intelligence agencies have gone on the overdrive to mop up revenue
and bring more corporate entities and services under the tax regime with the added emphasis on cases of duty evasion.

As part of the ongoing anti-evasion drive, the Directorate General of Central Excise Intelligence (DGCEI) and various commissionerates of central excise and service tax authorities have in the last few months booked cases with major revenue implications.

DGCEI raided the premises of a leading Kanpur-based businessman, owner of a leading gutka brand, suspected of evading taxes that are likely to touch Rs 50 crore, sources said. Just before the search was launched against the gutka company, DGCEI had initiated investigation against a leading airliner for an alleged tax evasion of more than Rs 140 crore.

In the airline case, the company had allegedly not paid service tax of over Rs 1,700 crore payment of which it had received on account of branding of the payee firm through display of logos on both sides of the aircraft, tickets, boarding passes and baggage tags.

Besides the DGCEI cases, the anti-evasion wing of the Commissionerate of Service Tax in Delhi has slapped tax notices against a dozen-odd companies, including realty, airlines and gas exploration companies, for evasion suspected to be over Rs 130 crore.

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