Had the Central Excise and Customs department been vigilant, the Satyam Computer fraud could have been unearthed in 2007 itself. The Comptroller and Auditor General (CAG) of India in its report on ‘Indirect Taxes – Central Excise, Service Tax and Customs’, filed before the Parliament, has revealed that Satyam had taken wrong credit on health insurance services obtained for its employees. The amount, which was to be paid to the Central Excise and Customs Department, was part of Cenvat (Central Value Added Tax).
The CAG has mentioned in the report, 2009-2010, that “Satyam Computer Services Ltd, in Hyderabad II Commissionerate, engaged in rendering of consulting engineers services, manpower recruitment agency services, etc, took credit of Rs 4.15 crore during the period between February 2006 and July 2007, of the service tax paid on health insurance services obtained from insurance companies for the welfare of their employees”.
