DGCEI Detects Case of Service Tax Evasion of About Rs. 10 Crore by ‘Skylark' Group of Companies - But can they Publish Names?
A CBEC Press Release states,
The Central Board of Excise and Customs (CBEC) has detected a total Central Excise and Service Tax evasion amounting to Rs.3333.28 crore and Rs. 10286.73 crore respectively up to February, 2012 in the Financial Year 2011-12. Further, during the investigation, Central Excise Duty and Service Tax amounting to Rs.972.69 crore and Rs.1182.64 crore respectively has also been realized.
Officers of Directorate General of Central Excise Intelligence (DGCEI) have detected a case of Service Tax evasion by ‘Skylark' Group of Companies, which is engaged in providing services of Security Agency and Man Power Supply service all over India. The estimated Service Tax evasion by these companies is about Rs.10 crore.
During the search conducted at various premises of the companies, voluminous incriminating documents indicating evasion of Service Tax as well as Indian currency (unaccounted) of Rs.77.5 lacs were recovered. The mastermind behind the evasion is one Captain T.C. Yadav (Retd.), who used to float a number of companies engaged in providing security service and manpower supply service under multiple identities. Although the Group had been collecting Service Tax from its customers, it paid a small amount to the Government towards discharge of its Service Tax liability, while illegally retaining with itself a significant amount collected as Service Tax from its customers.
Skylark Group is also running an education institute namely, Skylark School of Business and Technology (SSBT) and the Service Tax liability of these companies under the taxable service category of ‘Commercial Coaching & Training Service' is under examination. Further investigations in this case are under progress.
While the Board can take credit for its detective activities, is it fair to publish names of investigated assessees, even before they are officially condemned? It is not only unfair but also illegal.
While they are very reluctant to publish their notifications and circulars, why do they rush in to publish the names of assessees who are only charged with evasion?