Chandigarh, October 5: A year after he alleged a massive tax evasion, Punjab local bodies minister Navjot Singh Sidhu on Thursday said the directorate general of goods and services tax (GST) intelligence issued show-cause notices to Fastway Transmissions Private Limited (FTPL) and its top management for alleged evasion of service tax to the tune of ₹303 crore.
Addressing a press conference here, Sidhu said the GST intelligence issued the notices to the FTPL – a multi-system operator that had virtual monopoly over the cable TV business in Punjab during the previous SAD-BJP government – its managing director Gurdeep Singh, chief executive officer Peeyush Mahajan and two others on January 9, 2018, to show-cause why ₹303 crore should not be recovered from them along with interest and penalty.
The minister said show-cause notices were also issued by the service tax department to local cable operators and a joint venture firm for alleged tax evasion.
“About 1,500 notices have also gone to local cable operators for evasion of ₹336 crore. The total amount involved is ₹658 crore and the net implication can go above ₹2,000 crore along with penalties and interest. Of this, the Punjab government is entitled to the share of 62%. My stand has been vindicated,” Sidhu said waving copies of the show-cause notices as proof.
As per the show-cause notice issued by the additional director general of GST Intelligence, investigation revealed that during April 2010 to March 2017, the FTPL was allegedly evading service tax for cable operator services. Sidhu said this amount was just for five years and the earlier period had got time-barred. Asked about the present status of these notices, he said adjudication was pending.
The minister also alleged that the previous Badal government gave monetary benefit of ₹5,000 to ₹7,000 crore to the company by letting it illegally monopolise cable business in the state.
Earlier, Sidhu held in a press conference on July 6, 2017, charging the Ludhiana-based company, its associate firms and local cable operators with service tax evasion of around ₹2,600 crore on cable television services.
Responding to Sidhu’s press conference, the FTPL said his charges based on twisted facts and false statements were mainly out of “personnel vendetta” to spread false and frivolous propaganda. “The service tax matter was investigated by the preventive and intelligence wings of the department. After a long-drawn investigation by the agencies, the department issued the show-cause notice through which the liability of local cable operators was fastened on the FTPL,” the company said.
It said the GST/service tax department has not quantified or confirmed any tax liability on the company. “It is a legal and procedural issue to be settled by competent courts. The process of adjudication of the show-cause notice is under process,” it added.
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