Iron, steel merchants evaded Rs 2,739 crore in tax: Madras High Court informed
By Express News Service | Published: 01st April 2018 02:53 AM |
Last Updated: 01st April 2018 02:53 AM | A+A A- |
Image for representational purpose only.
CHENNAI: Iron and steel merchants in the State evaded sales tax to the tune of `2,739 crore from 2005, the Madras High Court was informed last week. The Additional Advocate-General (AAG) told Justice M Duraiswamy when a petition came up last week from city-based Surana Corporation Limited (formerly known as Rukma Industries Limited) challenging a notice dated April 16, 2014, demanding sales tax dues of `92.37 lakh.
Registered dealers under the then Tamil Nadu General Sales Tax Act, particularly those who were dealing in iron and steel, had evaded crores of sales tax by indulging in circular transactions and ‘bill trading’, the AAG told the court.
In similar pleas moved by such dealers the court passed interim orders to ascertain and report whether the assessments of the sellers were reopened, the AAG said. The AAG then produced documents to establish that the dealers were involved in circular transactions of iron and steel and were indulging in ‘bill trading’ activities.
