Evasion of Service Tax by CAG - No Notice - Yet…
IN -04.06.2012, we had reported about the Nagpur Central Excise Chief Commissioner's letter to all Chief Commissioners about the proposed Show Cause Notice to the CAG for evading Service Tax. DDT had suggestively asked whether the Chief Commissioners' conference would discuss this issue. Obviously it did.
DDT has authentic information that at least one Chief Commissioner had already written to his Commissioners that the matter is being examined by the Board and requested them not to take any action in the matter till Board issues further clarifications.
So, for the present, the CAG is safe - he need not have disturbed sleep worrying about summons from the Service Tax department.
Maybe the CAG should himself suo moto examine this issue to determine whether he is liable to pay Service Tax.
Many a time, the CAG writes in his reports - "the department's reply is not acceptable/tenable".
Now the Service Tax Department can say, the CAG's reply is not tenable!