Commendable recovery of Service Tax from foreigner – Board wants others to follow suit.
C BE C informs that the officers of the Central Excise & Customs Commissionerate, Raigad have been able to recover service tax arrears of Rs.58 ,86,132 from M/s Corus Consulting B.V. of Netherlands . M/s Corus had provided 'consulting engineering services' to M/s Ispat Industries Ltd during March, 1999 to March, 2003 and had not discharged their tax liability. Recovery of arrears from parties located outside India is creditable and it shows that it is indeed possible to recover such arrears with persistent and tenacious efforts.
In this regard, Board wants the Chief Commissioners to guide the field formation under their charge to make similar concerted efforts for recovery of such dues as was done by the officers of the Central Excise & Customs Commissionerate, Raigad.
But the Board letter does not specify what magic wand the Raigad Commissionerate used to get the Netherlands Company to shell out the Service Tax after five to nine years?
Now can Commissioners go on foreign jaunts to collect Service Tax?
CBEC F. No. 137/59/2008- C X.4 Dated March 11, 2008