On the basis of specific information regarding massive evasion of Service Tax and GST by prominent Motor Driving Schools in Nagpur City, simultaneous searches were conducted by the officers of DGGI, Nagpur Zonal Unit on the premises of the following entities:
- M/s Wazalwar Driving School Pvt. Ltd., Plot No. 173, Moreshwar Apartments, Shivaji Nagar, Nagpur (Directors: Shri Manish Wazalwar and Smt. RachanaWazalwar)
- M/s Desai Driving School, Plot No. 1, Main Road, Jiwan Akshay Society, Manish Nagar, Nagpur (Proprietor: Smt. Usha Manohar Desai)
- M/s Shree Driving School, Block No. 5, Gadge Maharaj Dharamshala, Medical Chowk, Nagpur (Proprietor: Shri Dilip A. Chitre)
During the investigations, it was observed that these entities were engaged in providing Motor Driving lessons, which are taxable services, for over 20 years but they had not taken registration or continued registration with the Department either under Service Tax or under GST.
It was also observed that a very small quantum of the receipts was being accounted for by these entities in the statutory records like Income tax Returns and other Financial documents, whereas the bulk of the receipts were taken in cash from the trainees in order to systematically evade payment of both Service Tax and GST.
On preliminary inquiries, including analysis of the Kaccha receipts and registers recovered and seized during the search operations, it has been estimated that a Taxable value of over Rs. 10 Crore has been suppressed by these entities in just the last 5 years, involving Service Tax and GST of the app. Rs. 1.86 Crore.