Proprietor who evaded service tax amounting to Rs. 2.26Cr arrested by GST Department

Proprietor who evaded service tax amounting to Rs. 2.26Cr arrested by GST Department Central Goods and Service Tax Department (CGST) Bhiwandi Mumbai arrested the Proprietor of the firm on 23.02.23 who collected the service tax amounting to 2.26Cr but the same was not paid to the government. The arrest was made under Section 89 of the Finance Act read with Section 174 of the CGST Act. He has been sent to judicial custody. Section 89 deals with Offences and penalties under the service tax regime. Since the Service Tax regime is not subsumed by GST Act, still action can be taken against evasion of service tax with the help of Section 174 of the CGST Act.