The department sleuths said that he had been defaulting service tax payment since 2008.
"We have arrested Praksah Shaktivel Thevar, director of M/S Captain Facility Service Ltd (CFSL)," confirmed Sushil Solanki, Commissioner of Service Tax.
The court remanded Thevar in judical custody till January 29.
Thevar is the second big arrest this week by the department, after January 15 arrest of Rohit Talwalkar, Director of Talwalkars Fitness Solution Private Ltd for evading service tax payment of Rs 3 crore since September 2008.
"CFSL defaulted around Rs 6.79 crore of service tax," an official said.