Rs 6cr tax evasion case against TMT units

JAMSHEDPUR: The regional unit of Directorate General of Central Excise Intelligence (DGCEI) has registered a case of service tax evasion against two leading units of TMT bar rolling mills in Bihar that have authorized shops in Jharkhand.
DGCEI, with jurisdiction over Bihar, Jharkhand and Odisha, lodged a case against Garg Rolling Mill and City Rolling Mill, for evading service tax to the tune of Rs 6 crore for FY 2012-13 and FY 2013-14. "The initial assessment has revealed tax evasion worth Rs 6 crore and further investigation is going on. The department will impose heavy fine on the offenders," said a member of the team that conducted raids on the company's office in July.
According to officials, Garg Rolling Mill paid a penalty amount of Rs 25 lakh with DGCEI on the spot following raids on their premises. The pending dues will be paid by the company after final assessment.
Led by additional director of DGCEI, Debasish Sahu, the officials conducted raids at the Garg Rolling Mill's offices in Hajipur and Patna and City Rolling Mill office in Beta. Documents disclose that Garg Rolling Mill has been evading service tax for the last 16 months while City Rolling Mill has been doing so for the past six months.
The DGCEI regional unit has witnessed a considerable growth in the registration of the cases pertaining to service tax evasion in the recent past. The department has booked cases up to the tune of Rs.106 crore and recovered Rs.9.25crore during fiscal 2012-13 financial year.