Rajpal Singh, the director of an online shopping website Gadgets Guru, was arrested on Saturday for allegedly evading service tax and Goods and Service Tax (GST).
As per GST officials, he evaded service tax of Rs 3.06 crore and GST of Rs 578 crore.
Rajpal Singh has been sent to judicial custody till April 24.
Gadgets Guru is a technology and information e-commerce site, which is a sister concern of Oracle Telesystems, Singapore. The company headquarters are located in Mumbai.
The power to arrest a Service Tax evader was first given in 2013 before which revenue authorities had no power to arrest such persons for non-payment of collected Service Tax.