Arrest under Service Tax -Is it a Police State?
IN the last few days, it was widely reported that Make My Trip is under DGCEI investigation for evasion of Rs.67 crores of Service Tax. The DGCEI has arrested one of the top executives of the Company.
Yesterday the Delhi High Court heard a writ petition filed by the travel company. The Company submitted before the Court that it was not liable to pay the tax, but paid Rs. 40 crore after the arrest. (Voluntary of course - payment, not the arrest!)
The Delhi High Court is reported to have observed,
No show cause notice, not even a scrap of paper to show that he owes 67 crores to you. This is a remarkable way of collecting taxes. Do you have any document to prove his liability? Now, even without a notice you have collected 40 crores. We are getting reduced to a police state, that is what is happening.