Mining firm MD arrested for 'evading' Rs 4.7 cr service tax

In a first arrest of a service tax defaulter in the northeast, a managing director of a mining firm has been held for allegedly evading this central levy to the tune of about Rs 4.71 crore.
Ashok Jain, Managing Director of M/s Saumya Mining Limited, a registered entity under the Shillong (Meghalaya) Central Excise and Service Tax Commissionerate, was arrested for continued default in tax payment, officials said today.
The firm, engaged in extraction and Coal, Uranium and metalliferous mining, did not offer any comment to phone call and emails requests by PTI.
The company was providing services of mining of minerals, oil or gas services to M/s Lafarge Umiam Mining Pvt Ltd at Shella, East Khasi Hills in Meghalaya, and has been collecting the service tax but failed to pay the amount to the exchequer, the officials said.

During the course of investigation, it was found that the firm (Saumya Mining Ltd) had collected nearly Rs 6.77 crore service tax for the period from April 2012 to October 2013. Whereas, it paid about Rs 2.06 crore to the government thus short in paying about Rs 4.71 crore, they officials.
"They are liable to pay interest on the said amount not paid or short paid," they said.

Jain was responsible for payment of collected service tax to the government. He was arrested from his Kolkata residence on December 10 by a team of officers of Central Excise Commissionerate, Shillong, the officials said.

He has been sent to judicial custody till December 24 by a Chief Judicial Magistrate court in North 24 Parganas in West Bengal.
It is the first arrest of a service tax defaulter in the northeastern region, they said.