With tax collection much below target, the Finance Ministry has warned the evaders of Customs and excise duty and service tax to pay the dues or ready to face the consequences which include arrest and prosecution.
In a very strongly worded message, Revenue Secretary Sumit Bose said: “It has been observed that a number of Central Excise assesses continue removing the goods clandestinely, sometimes even without registration, misusing CENVAT credit or simply not paying Central Excise duties which are due to the Governments, in disregard to law.”
The Finance Ministry is keeping a very close watch on such elements. “They are advised to come forward to pay all due taxes and avail themselves of the benefit of reduced penalty. If they fail to do so, they should be ready for the consequences,” he added.
These include recovery of the duty along with interest and penalty up to 100 per cent, suspension of CENVAT credit, provisional attachment of property and arrest and prosecution.
Returns filing
The Revenue Department has also disclosed that that more than half of the registered service providers are not filing returns.
It has also gathered information that a number of service providers are collecting service tax from the receivers of the services but not depositing the tax with the Government.
“Let me warn them that all such service providers will not only be liable to pay the service tax along with interest and penalty which may be equal to the service tax evaded, but they can also be prosecuted for these offences. Money due to them from a third party can also be appropriated by the Government,” he said.
Under, over invoicing
He also mentioned that some importers and exporters are indulging in under invoicing in imports, over invoicing in exports and mis-declaration of goods and are misusing exemptions and various incentive schemes to evade Customs duty.
When 70 per cent of the consignments are being cleared by Customs on a self-assessment basis, it is incumbent upon the importers and exporters to discharge their duty liability, he said.
“Some unscrupulous elements are already on the radar of DRI and intelligence wings of the Custom Houses. Such importers and exporters should be ready to face legal consequences including arrest and prosecution besides payment of duty with interest, fine and penalty up to 100 per cent of duty evaded,” he advised.