The Service Tax department today said it has written to oil PSUs who are clients of a shipping firm regarding the default on tax to the tune of Rs 7 crore.
According an official, Varun Shipping which is in business of giving ships on hire has tax outstanding of about Rs 7 crore.
"We have written to HPCL, BPCL and IOC who are major customers of Varun Shipping Co. To pay money which they owe to the latter since as per the law the tax dues can be recovered from the debtors of the defaulter," said the official.
According to the official, the accounts of Varun Shipping with Bank of Baroda and Yes Bank have been frozen.
