The Commissionerate of Central Excise and Service Tax, Chandigarh is increasing surveillance in order to check tax evasion. The Department has jurisdiction over Chandigarh, Mohali, Mandi Gobindgarh, Fatehgarh Sahib and Himachal Pradesh.
The Department has detected evasion worth Rs 60.7 crore of central excise and Rs 24.7 crore of service tax upto September 2010. During the corresponding period last year, the evasion was Rs 9.67 crore and Rs 13.22 crore of central excise and service tax respectively.
Speaking to Business Standard, Central Excise and Customs & Service Tax Commissioner H K Thakur said, “As it is evident from the data, the evasion is huge as compared to last year. We are keeping a check on evaders and would also take stern action. During the audit what we have seen even the large corporates are involved in central excise and service tax evasion.”
He added, “Recently, we have issued show cause notice to Philips Electronics, Mohali for evasion of Rs 22 crore of central excise. The company has a manufacturing unit in Mohali and is taking service tax credit on brand promotion, which has nothing to do with manufacturing. Already, the company has submitted Rs 4 crore of the evaded amount. Similarly TVS Motor Company having manufacturing unit in Nalagarh has evaded Rs 10 crore of National Calamity Contingent Duty (NCCD), which is levied at 1 per cent on the value of the product.”
However the officials of both the companies could not be contacted.
Earlier the department has also issued show cause notice to cricketer Yuvraj Singh for evasion of service tax of Rs 1.32 crore and Rs 1.16 crore respectively. Besides that it has also issued show cause notice to Ness Wadia-Preity Zinta promoted KPH Dream Cricket (P) Ltd for evasion of service tax of about Rs 5 crore.
The Department expects that after taking action against defaulters, the compliance will increase and so the collection. This year the Chandigarh Commissionerate is targeting to garner Rs 220 crore as central excise and Rs 400 crore as service tax.