“Harbhajan was served a showcause notice in December 2010 by the department for evading service tax. The department made a demand for Rs. 1.15 crore as service tax, including Rs. 42.3 lakh payable for his business support services in the Indian Premier League from April 1, 2008, to March 31, 2010,” sources said.
“Besides, a sum of Rs. 69.55 lakh is payable for business auxiliary services rendered in the form of brand promotion from April 1, 2006, to March 31, 2010. In addition, service tax of Rs. 3.88 lakh is to be paid against the income from renting personal premises in 2009-10,” sources added.
After the department issued a showcause notice to Harbhajan, he had approached CESTAT for relief. The tribunal had on October 8, 2012, ordered him to submit pre-deposits to entertain the appeal and grant an injunction on paying the rest till the final decision.