Civic body slaps tax evasion notices on 140 petrol pumps

The South Municipal Corporation has issued notices to approximately 140 petrol pumps for alleged tax evasion and other irregularities.

B N Singh, the corporation's joint assessor and collector, has asked the managing directors and chairpersons of these petrol pumps to explain the tax default. These petrol pumps belong to Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL).

Singh said 62 notices were sent to IOC, 35 to HPCL and more than 40 to BPCL for various irregularities in their petrol pumps.

The irregularities include flouting norms on covered area of petrol pumps; and non-payment of tax on billboards, open sheds and underground storage tanks.

The corporation has issued notices under Section 152 A of the DMC Act, which pertains to prosecution, and Section 123-D (mentioning less covered area than what was found during inspection).

"You are hereby given an opportunity to appear before the official in person or through authorised representatives on November 16 and produce the relevant evidence and documents in support of your case of properties and as to why the assessment should not be made, revised or reopened from 2004 onwards," the notice says.

"You may bring any stay from court with regard to assessment or payment of property tax filed along with payment of tax or dues. The assessment will be finalised on the basis of information available without further communication to you thereby precluding you from any objection to any assessment made," it says.

Corporation officials alleged that the petrol pumps have evaded tax despite exceeding their covered area. "This was done without seeking permission or informing the corporation. Thus, tax on covered area, which includes hoardings, has been evaded. This can attract rigorous imprisonment for six months and can be extended up to seven years," Singh said.

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