with authorities despite collecting it from customers. The tax liability comes to about Rs 40 crore. The company has also not filed statutory returns for more than 20 months.
The arrest was made after the managing director and other officials of the company failed to cooperate with the investigators despite several summons.
After sustained surveillance, the persons' whereabouts were located and their statements were recorded. Both the MD and GM of the company have accepted the statutory tax liability and conceded the fact that they collected GST from customers.
"As the evidence gathered has suggested that both these persons are trying to flee the country through the land borders in order to evade tax, both have been arrested following the due process of law. Further investigation is going on," said a statement issued by the authorities.