The Commissioner of Goods and Services Tax (GST) and Central Excise has denied the charge of attempting to damage the image of renowned composer A.R. Rahman by accusing him of evading payment of service tax through artificial segregation of a bouquet of services rendered by him while composing and recording songs as well as background score for feature films.
In a counter-affidavit filed before the Madras High Court, the Commissioner asserted that he had demanded ₹6.79 crore towards arrears of service tax, excluding interest, and also imposed a penalty of another ₹6.79 crore after being fully convinced that the entire bouquet of services, and not just a part of it, offered by the musician to the film producers was liable to be taxed.
When a writ petition filed by Mr. Rahman in 2020, challenging the demand notice issued in October 2019, was listed before Justice Anita Sumanth on Tuesday, senior Central government standing counsel Rajnish Pathiyil said the proceedings against the composer were initiated based on intelligence gathered by the Directorate-General of GST Intelligence.
