Service Tax Sleuths "rounded" up by Police
IT happened in Hyderabad last week. A team of Service Tax sleuths led by Assistant Commissioner R. Kalyan went to search the premises of an ace educational academy, which coaches students for GATE, IES etc, for possible Service Tax evasion. The lady in charge made them wait till some responsible person arrives. After some time a group of policemen landed there and demanded the identity cards of the Service Tax officers, on alleged complaint they were fake officers. After some discussions, the police were convinced that the officers were genuine and so they left the place. In the meantime the officers came to know that the records were kept in another premises. Off they marched to the new premises, leaving a couple of inspectors at the original premises. And the Police came back - again suspecting the genuineness of the Service Tax officials. Again after some talks, the police withdrew.
The Service Tax officers continued their search and seized a mountain of documents. It is alleged that the academy was not paying any Service Tax on the taxable services rendered. It is learnt that they have voluntarily paid an amount of Rs. 20 lakhs after the search. It is also heard that the interference by the police has been mentioned in the mahazar. Though the officers feel intimidated, they are happy that they could withstand the pressure and complete their mission.