AS a part of its drive against the Service Tax Evaders and offenders, the Service Tax, Mumbai-I Commissionerate has arrested Nagraj Kotwal, accounts manager of M/s Evans Fraser and Company India Ltd. The accused person is involved in fraudulent accounting and signatory to forged documents.
According to service tax officials, the said company is engaged in the services of renting of immovable property and has availed and utilized inadmissible Cenvat Credit using fraudulent method like forging of Stamp Paper.
An agreement was entered between M/s. Evans Fraser and Company India Ltd and M/s Next Retail India Ltd, both companies are associated group company of the Videocon conglomerate. An Agreement showing date of execution as January 18, 2008 was written on a stamp paper purchased in August 2013. The enquiry with the Treasury Office revealed that the Stamp Paper was issued in August 2013 but both the above companies showed that agreement was entered in January 2008. The intention of both the companies was to misinform the department and avail inadmissible Cenvat Credit of Rs. 1.54 Crores which was actually not rendered.
It is important that M/s Next Retail India Ltd has issued invoice of Rs 15 Crores on M/s Evans Fraser and Co India Ltd for providing maintenance and Repair services but in fact no service has been provided. Only to encash the Cenvat Credit , M/s Next Retail India Ltd has issued invoice without providing any service and based upon said bogus invoice M/s Evans Fraser and Company India Ltd has taken wrong credit of Rs 1.54 Crore. During investigation they have paid Rs 1.54 Crore .
Investigation is going on to find out any other person involved in the evasion of taxes.
Kushalatha Naik, Assistant Commissioner, E.J.Thomas, Superintendent, Michael Andrew, Inspector and others played important role in investigations and apprehending the accused. The whole operation was supervised by Satish Dhavale, Additional Commissioner.