Commissioner of the Department, Kumar Santosh, said MLC Munde is the proprietor of the Parli-based firm, Dhananjay Aanditrao Munde, and is also acting as its commission agent.
The firm collected service tax from its clients, but failed to deposit it with the concerned State department. Moreover, the firm also failed to file the returns of its business, for which Munde was served umpteen notices earlier.
Meanwhile, the Union Finance Ministry had introduced a scheme known as Voluntary Compliance Encouragement Scheme (VCES), which was in force till December 31, 2013. The defaulters were given a chance to disclose their business information for the period between October 2007 and December 2012. Interestingly, MLC Munde, disclosed the business details and accepted the liability of Rs 1 crore towards service tax, but didn’t deposit the amount.
He was summoned to the Aurangabad office of the Commissionerate and arrested on Thursday evening.