Punj Lloyd faces Rs 61-cr service tax liability

Written by Press Trust of India | Updated: Feb 27 2014, 11:00am hrs
Infrastructure and engineering major Punj Lloyd has come under the scanner of the central excise department over alleged pending Service Tax liability of Rs 61 crore.

Punj Lloyd voluntarily deposited Rs 1.06 crore on the spot through challans when excise officials visited them during an investigation in the matter. They have also submitted post-dated cheques of Rs 10 crore as part of their pending Service Tax liability, official sources said.

A Punj Lloyd spokesperson, when contacted for their reaction, said in an emailed response that "routine general investigations" were being carried out against them by the Directorate General of Central Excise Intelligence (DGCEI).

"Neither has the DGCEI issued any show cause notice to the company. Routine general investigations, as they are done for several companies, are being carried out by them and Punj Lloyd is fully cooperating and submitting the required information," the spokesperson said in a statement.

The DGCEI has not found any shortfall in the deposit of Service Tax by Punj Lloyd Limited. "We have been paying Service Tax dues since April 2013. In fact, the last payment was made in January 2014," the company said.

Acting on information that the firm was collecting Service Tax but not depositing it with the exchequer, an investigation through summons proceedings was initiated against Punj Lloyd by DGCEI, the sources said. They claimed to have found that Punj Lloyd was not filing ST-3, a mandatory form for filing Service Tax returns, since April.