The Centre on Monday moved Supreme Court seeking to restore its authority to take action against defaulters of service tax. It also said that the Service Tax department has power under Finance Act, 2013 and it did no wrong in arresting MakeMyTrip Vice President. Centre pleaded the Supreme Court division headed by Chief Justice of India T S Thakur to restore its power to arrest the defaulters of service tax. However, after hearing the plea the apex court said there is no urgency and added that the matter and could be taken up in the normal course.
Disapproving the manner in which officers of Directorate of Central Excise arrested V-P of MakeMyTrip for alleged evasion of service tax of about Rs 67.44 crore, Delhi High Court said, earlier this year, such conduct cannot be “countenanced”. “In how many cases of massive defaulters have you made arrests? This (conduct of excise department) will not be countenanced on our watch. We cannot countenance that you arrest without issuing a show cause or demand notice or without informing the person in writing..,” a bench of justices S Muralidhar and Vibhu Bakhru said. The court also directed the portal to file an affidavit naming the excise officers who were involved in the arrest of its Vice President (Finance) as well as those who allegedly made threats to coerce the company to deposit the service tax.