"In many cases, the service providers collect service tax from their clients but do not deposit it with the government," said CBEC member (service tax) Lipika Majumdar Roy Choudhury.
"CBEC would appeal to all service providers to comply with the law and pay service tax that is due. Failure to pay service tax will attract appropriate action under law including recovery of tax, interest and penalty. Prosecution and attachment of property are also envisaged in appropriate cases," she said.
The Central Board of Excise and Customs (CBEC) has detected tax evasion of Rs 9,800 crore during April-December period of the current fiscal against Rs 5,000-6,000 crore in the same period of the last fiscal.
However, she said that the department realised Rs 2,000 crore during the current fiscal bringing down the evasion amount to Rs 7,800 crore.
Giving details of the some prominent cases, she said oil and gas sector has admitted liability of Rs 150 crore, a company construction services Rs 18 crore, security services firm Rs 86 crore, pharmaceutical sector Rs 28 crore.
Asked whether the department would be able to meet service tax, she said, "I am hopeful that we will achieve the target."
During the first 9 months of the current fiscal, the service tax has witnessed a growth of 34 per cent, she added.
