Consultant pocketing Service Tax and giving forged challans to assessee
IN DDT 2574 we reported that the Mumbai Service Tax has arrested one S. Shivaraman, Tax Consultant for evasion of Service Tax amounting to Rs.89 lakhs!
It seems that the phenomenon of Consultants pocketing the Service tax amounts entrusted to them for depositing into the bank accounts is perhaps fast catching up with other metros too as the quickest way to become rich!
In both the below mentioned cases, it appears that the assessees had entrusted money with the Consultants for depositing the TR-6 challans but the Consultants forged the Bank's seal and signature, pocketed the amounts, and gave forged challans in token of having deposited the money with the exchequer.
The CCE, Pune-I is before the CESTAT against the orders passed by the Commissioner(Appeals).
Perhaps the Commissioner(A) had taken a compassionate view of the matter and granted waiver from the penalties imposed on the assessees. This, we say, because the order does not indicate as to what for the Revenue is before the Tribunal.
Be that as it may, the Bench observed that upon investigation by the Revenue it was found that the Consultant had committed the fraud and there was no complicity on the part of the assessees.
And, therefore, held that the findings of the Commissioner(A) were correct and upheld the same, thus dismissing the appeals filed by the CCE, Pune-I.