NMC to attach Merc, Chevy showrooms over octroi evasion

NAGPUR: Following non-payment of octroi evasion amount for two years, the Nagpur Municipal Corporation (NMC) is set to attach showrooms of Mumbai-based Auto Hangar (India) Private Ltd, dealers of Mercedes-Benz cars, and city-based Tajshree Auto, dealer of Chevrolet cars.
A team of NMC will go to Mumbai for attaching the property of Auto Hangar while Nagpur tehsildar has been asked to attach the property of Tajshree Auto at MIDC Hingna.Mumbai-based Court of Small Causes has okayed attachment of the Auto Hangar showroom and asked the NMC to send two officials along with locks, chains etc. For attaching any property in Mumbai, permission of Court of Small Causes is required.
Municipal commissioner Shyam Wardhane has asked the local body tax (LBT) department, erstwhile octroi department to send the team and attach the showroom for recovery of Rs 56 lakh.
Assistant commissioner (LBT) Milind Meshram told TOI the amount was due from Auto Hangar since April 23, 2012. "Auto Hangar had sold 11 Mercedes-Benz cars in the city without paying octroi between April 1, 2009, and September 9, 2011. The representative of dealer even produced a fake octroi payment receipt for registration of vehicles here. Demand note to pay Rs 56 lakh penalty, it being ten times of tax due, was sent to the dealer who filed a writ petition in the court challenging the action. The court has not given any stay on NMC action. Therefore, NMC's legal department is going ahead with action," he said.
Meshram added that Tajshree Auto evaded octroi adopting a different modus operandi. "Dealer had undervalued 89 cars between April 1, 2011, and May 22, 2012. The firm also failed to produce octroi receipts for eight cars. A penalty of Rs 76.63 lakh was slapped on it in August 2012. Dealer's appeal before the civic chief was rejected. Tajshree then paid only Rs 2.60 lakh as octroi for the cars and did not pay the penalty amount. NMC sent letters to tehdilar of Nagpur rural to attach the dealer's property but it was not done. Now district administration has assured to attach the property within a couple of days," he said.
Meshram said Tajshree Auto used to undervalue cars by not including sales tax amount. "Rules say octroi should be paid on customer sale value that includes sales tax. Tajshree Auto used to collect octroi from customers but not pay it to NMC," he said.