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Mohammed Aslam Choudhary has been arrested by service tax-I Commissionerate, Mumbai yesterday. Choudhary has been running five security service firms. Choudhary has been found guily of not paying service tax amounting to more than Rs 5 crores which was collected but not paid to the government.
Choudhary started a modus operandi whereby he kept creating new firms and closed down old firms. He has also been changing the addresses of these firms. His present office is situated in Marol in Andheri East, the service tax department said in a press release.
Choudhury has been providing services to many prominent builders in the city. These builders have also been asked to pay service tax out of the amount payable by them to Honest Securty. As per the service tax law, recovery can be made even from clients of the defaulting firms, if they have to pay some money to the defaulting firms.
Recently, the service tax department had sought some information from Choudhury, but he refrained from doing so and has been absconding since then. He also changed the office premise from time to time to avoid detection by service tax officers.
Choudhary had earlier manipulated the company's balance sheet and profit and loss account to show lower turnover to evade service tax. He was lodged in Azad Maidan police station on Monday night.
