The Central Board of Excise & Customs (CBEC) have estimated that the service tax evaders have resulted in a loss of Rs 9,800 crore during the first nine months of the financial year from April to December, 2012.

The regulator has urged the service tax evaders to pay their dues or face actions from the tax authorities. It noted that some service providers said that they are not aware of the law while others intentionally failed to pay taxes. Figures showed that the oil and gas sector reported an invasion of Rs. 150 crore Rs. 18 crore in construction services, Rs. 86 crore in security services, and Rs. 28 crore in pharmaceutical.

Lipika Majumdar Roy Choudhury, a CBEC member for service tax said, “CBEC would appeal to all service providers to comply with the law and pay service tax that is due. Failure to pay service tax will attract appropriate action under law including recovery of tax, interest and penalty. Prosecution and attachment of property are also envisaged in appropriate cases.”

The CBEC had recorded service tax evasion amounting to Rs 5,000-6,000 crore in April-December of the previous year.