The city police are yet to pay service tax worth Rs12.1 lakh to the central excise department for the Rs1.1 crore the police received from five city-based industrialists for providing security to them. The service tax is for the years 2007-12 and, though the excise department has sent a show-cause notice in connection with the pending amount, the police are yet to file their reply, a source said.

Contacted, police commissioner Ishwar Singh said the money given by the industrialists did not come under service tax. "Security was provided to such individuals on recommendations of the government. Some of them hold important government posts. Though they paid for the security, we cannot see it as service rendered by the department," he said.

He added that the police had spoken to the excise department. "We have spoken with the excise department in this regard and apprised them of the situation. It's a matter between the state government and a Central government department now as the amount paid by the individuals has been submitted in the state treasury.
He, however, clarified that if the tax was applicable, the police would pay the amount to the central excise department.