The director of a Mumbai-based company was held here on Tuesday on the charge of evasion of service tax to the tune of Rs.92 lakh. This is the first arrest for service tax evasion in the State.
Salim Sheikh, director of Klass Kone Engineering Pvt. Ltd., was arrested by the Preventive Wing Headquarters of the Customs Department in Kochi under Customs Commissioner K.N. Raghavan on charge of evasion of service tax. His company allegedly did not pass on the service tax collected from customers to the government.