“The company provides helicopter chartering services,” the finance ministry said in a statement without naming the company. The official was arrested Saturday.
The concerned company is also suspected to have fraudulently availed central value added tax (CENVAT) credit of more than Rs.30 lakh, it said.
In addition, the party is also facing departmental proceedings in a “show cause notice” for Rs.3.9 crore for short payment of service tax, for a previous period.
This is the second arrest by the Delhi Service Tax Commissionerate in the current fiscal.