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01 Mar 2024, Edition - 3153, Friday

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Central Excise slaps notice on Parsns for evading service tax

U Bharath


The Central Excise (Intelligence wing) has served a show cause notice on Parsn Apex Welfare Society, (registered under Tamil Nadu Societies Act)  a gated community in Nanjudapuram for evading service tax to a tune of over Rs 30 lakhs.

Alleging that the Society, which is the service provider for basic amenities such as water, maintenance of sewers, road maintenance within the community and gardening, have evaded paying service tax to the Central Excise department, the intelligence wing, which investigated the case, served a showcase notice on and its office bearers S Ravi, the President and N Prabhu, the Secretary of the Society.

Unconfirmed reports say that the Central Excise has directed the society to pay the overdue of service tax amount of Rs 30 lakh with penal action pending.

According to the residents here, the service provider has regularly collected Rs 900 per month, from each one of the house owner families, but they have not submitted their accounts to the registrar of societies in the past six years.

Dr Kanakasundaran, one of the affected residents and former president of Licensed Building Surveyors Association said that the Parsn Foundation Limited, the builder of the gated community, has not obtained plan approval from Coimbatore City Municipal Corporation but sold the houses without the mandatory plan approval.

When Covai Post contacted S Ravi, the President of Parsn Apex Welfare Society, said that the copy of the show cause notice has been circulated among the community. However,  on crosschecking it was denied by the residents.

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