Tax evasion case against energy giant

CHENNAI: The Directorate General of Central Excise Intelligence (DGCEI) has booked a case of evasion of service tax (ST) to the tune of Rs 107 crore over the past five years against a leading Chennai-based company that executes mega turnkey projects for power sector.In an official release here on Friday, the DGCEI said BGR Energy Systems India Limited had contracts worth Rs 20,000 crore to carry out projects in thermal power plants. Upon investigation, it was allegedly found that the company had suppressed full value of contracts and services to State and private power generating entities.“An investigation was done covering 12 mega thermal projects of BGR Energy including those in Mettur and Valuthur in Tamil Nadu besides others in States including AP, Maharashtra and Chattisgargh,” the DGCEI said. Following the probe, it was allegedly found to be deliberately suppressing taxable value with an intention to evade ST, it added.  “A show cause notice has been issued. It is estimated that the short payment of service tax is about Rs 107 crore.”