Facing flak over its decision to slap service tax on fund collected from the ticket sale to attend Narendra Modi’s rallies, the Central Excise Department on Tuesday withdrew related notices sent to four BJP offices.
The Director General of Central Excise Intelligence officials said the notices sent to Chandigarh, Himachal Pradesh, Jammu & Kashmir and Punjab units of BJP by its ludhiana regional unit stand withdrawn. The officials did not give any reason for deciding to withdraw the notices that were sent on February 12, but informed the BJP offices that “no action is required to be taken at your (BJP) end” on the letters.
Incidentally, the Chandigarh Unit of the BJP, which has not yet conducted rally of Modi, also got the notice from Intelligence Wing of Central Excise. The BJP saw in this step yet another manifestation of what it termed as the Congress party’s desperation over not having been able to counter Modi’s growing popularity. “Absurd that it may sound, they now propose to tax Modi’s rallies.
Considering the mammoth crowds which gathers to listen to Narendra Modi all over the country, this can be Finance Minister’s faint hope of augmenting his otherwise depleting revenue,” BJP leader Arun jaitley reacted on his blog. BJP leader Subramanian Swamy minced no words and accused Finance Minister P Chidambaram behind “these kind of dirty tricks”.
“How demanding Service Tax on donations in Modi’s meetingsIJ PC’s (P Chidambaram) brain deadIJ” Swamy Tweeted. “Govt of India wants to fill their empty coffers by imposing tax on Modi’s rally,” asked BJP leader Sushil Modi on Twitter.
In its letters to the BJP units, the Directorate General of Central Excise Intelligence (DGCEI) had asked them to intimate about the details of amounts collected and service tax paid, if any, in regard to entry tickets to various rallies organised in the region after July one, 2012. “You are requested to intimate within 10 days of the receipt of this letter the details of the amount collected and service tax paid, if any, in regard to entry tickets various rallies organised after July 1, 2012 by the BJP/Narendra Modi in the region falling under your office,” said Rajesh K Arora, Directorate’s senior intelligence officer in his letters.
It said neither the party nor Modi was registered under service tax nor no service tax has been paid on collection from tickets. The DGCEI, in its letter, had cited media reports claiming that money was being charged from people who attended the rallies of Modi. The department, which comes under Finance Ministry, took cognizance and raised a demand about the non-payment of service tax.