By TIOL News Service

MUMBAI, APR 23, 2014: THE Mumbai Service Tax Commissionerate has arrested an Accounts Manager of M/s Evans Fraser & Co India Ltd on charges of providing forged documents. The assessee has been alleged of providing renting services of immovable property and had availed inadmissible Cenvat Credit by allegedly forging agreement documents with M/s Next Retail India Ltd - both are Group companies of Videocon Group. As per the Press Release issued by the Commissioner, Mr Sushil Solanki, an agreement showing date of execution as 18.01.2008 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 stated that M/s Next Retail India Ltd has issued invoice of Rs 15 Crores on M/s Evans Fraser & Co India Ltd for providing maintenance and Repair services but in fact no service was provided. Only to encash the Cenvat Credit, the Commissioner stated in the Release that M/s Next Retail India Ltd had issued invoice without providing any service and based upon said bogus invoice M/s Evans Fraser & Co India Ltd had taken wrong credit of Rs 1.54 Crores. During investigation they paid Rs 1.54 Crores. Investigation is going on to find out any other person involved in the evasion of taxes.

Ms A. Kushalatha Naik, Asstt Commissioner, Mr E.J.Thomas, Superintendent, Mr Michael Andrew, Inspector and others played important role in investigations and apprehending the accused. The whole operation was supervised by Mr Satish Dhavale, Additional Commissioner.