SHILLONG: A team of Central Excise officers from Shillong with the assistance of officers of Service Tax Commissionerate, Kolkata, arrested Ashok Jain, Managing Director of city-based Saumya Mining Limited, from his residence in Kolkata on December 10 for evading payment of service tax to the tune of over Rs 4.70 crore.
Jain was produced before the Chief Judicial Magistrate, North 24 Parganas, West Bengal, on the same day after which he was remanded in judicial custody till December 24.
The Managing Director was held responsible for continued default in service tax payments even after collection of the same.
According to the Additional Commissioner Central Excise, Saumya Mining Limited, which is a Management or Business Consultants Service to M/s. Lafarge Umiam Mining Pvt. Ltd. at Shella, East Khasi Hills, has been collecting service tax but failed to pay the amount collected to the credit of the Central Government.
“An investigation was initiated by the Anti-Evasion Unit of Central Excise & Service Tax of Shillong Commissionerate,” the Additional Commissioner Central Excise said in a statement issued here on Thursday.
During the course of investigation, it was revealed that they had collected service tax amounting to Rs.6,77,35,899 during the period from April 2012 to October 2013, whereas till date they have paid an amount of Rs.2,06,51,642 only to the Government exchequer, thus defaulting in payment of Rs.4,70,84,257 to the Government, despite having collected the same.
The firm is also liable to pay interest on the amount not paid/ short paid, the Additional Commissioner of Excise said.
The mining firm has committed an offence specified under Section 89(1) (d) of Finance Act, 1994 and therefore is liable for punishment in terms of Section 89(1) (ii) ibid read with Sec 9AA of the Central Excise Act, 1944, the official added.
