The Anti Evasion Wing of the Commissionerate of Service Tax, Delhi issued 9 large demands of more than Rs.77 Crores and recovered Rs.12.86 Crores in the month of May, 2008.  Some of the major cases for which the demands had been issued includes the demand of Rs.35.54 Crores against M/s Era Infra Engineering Ltd. for wrong availment of benefit of abatement  by non inclusion of value of free supplies  material, the demand of Rs.8.55 Crores against M/s Coca Cola India Inc. for non payment of service tax on out of pocket expenses and the demand of Rs.6.16 Crores against M/s Lufthansa Airlines for non payment of Service Tax on full value of fare received in the category "Passenger embarking by air in India for international journey in a class other than economy class".

Service tax enforcement: large demands issued over incorrect abatement, out of pocket expenses and fare valuation breaches. Issuance of multiple large service tax demands and recoveries focused on incorrect valuation and non payment: contested abatement treatment excluding value of free supplied materials from the taxable base; characterization of reimbursed out of pocket expenses as taxable consideration; and valuation of passenger fares for international travel above economy class for levy purposes. The actions exemplify administrative enforcement targeting supplier accounting practices and carrier fare valuation to secure assessment and collection.