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BGR Energy issued notice over service tax evasion

BGR Energy issued notice over service tax evasion
PTI
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First Published: Fri, Oct 28 2011. 05 21 PM IST

Updated: Fri, Oct 28 2011. 05 21 PM IST
Chennai: The Directorate General of Central Excise Intelligence unit has issued a show cause notice to engineering, procurement and construction major BGR Energy Systems, following alleged evasion of service tax to the tune of Rs 107 crore.
“It has been alleged that during investigation BGR Energy Systems have suppressed the full value of the works contract services rendered by them to state and private electricity generating bodies,” a PIB statement here said.
The agency carried out an investigation in 12 mega thermal power projects of the Chennai-based BGR Energy Systems including those in Tamil Nadu, Andhra Pradesh, Maharashtra, Rajasthan and Chhattisgarh.
The DGCEI Chennai unit has booked a case of evasion of service tax on a massive scale against BGR Energy Systems to the extent of Rs 107 crore, it said.
BGR Energy Systems has been accused of “deliberate suppression of taxable value with an intention to evade service tax,” it said.
“A show cause notice has been issued in this regard estimating the short payment of service tax at about Rs 107 crore over the past five years. Liability for interest has also been alleged in the show cause notice,” it added.
Despite repeated attempts, company officials declined to comment on the issue.
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First Published: Fri, Oct 28 2011. 05 21 PM IST