EBM seeks service tax due of over Rs 2 cr from Central depts
Malda: The English Bazar Municipality (EBM) has sent notices to three Central government departments — Railways, Postal and BSNL — seeking service tax dues of over Rs 2 crore that have not been paid for the past several years.
According to the civic body, despite repeated requests, these departments have failed to pay the dues. As a result, the municipality has now sent the notices following a formal decision taken at the Board of Councillors’ meeting.
EBM chairman Krishnendu Narayan Chowdhury stated: “The Supreme Court has ruled that if Central government departments do not pay the service tax, the municipality can take legal steps. We have sent another letter requesting payment, and if the tax remains unpaid, we will proceed according to the law.”
The municipality’s Finance Department has said that the total outstanding amount is “more than Rs 2 crore, with Rs 1.63 crore owed alone by the Railways”. No payment has been made by the Railways since 2009. The remaining dues are from the Postal Department and BSNL, it said.
The services provided by the municipality to these departments include maintaining the roads leading to their offices, cleaning drainage systems and street lighting, as well as providing drinking water and tank cleaning for residential complexes. The municipality has been providing these essential services without compensation for years.
An official from the municipality’s Finance Department said: “The Railways has not paid the service tax since 2009, and the Postal and BSNL departments still owe significant amounts.”
At the recent Board of Councillors’ meeting, a decision was made based on the Ministry of Urban Affairs’ directive, which allows municipalities to charge service tax to all Central government offices, particularly the Railways and Postal offices. The municipality has also referenced a case from Rajkot, Gujarat, where similar issues were resolved through legal action.
If payment is not made, the English Bazar Municipality plans to approach higher courts for resolution.
