KOLKATA: Two officials of a Kolkata-based multi service operator (MSO) Kolkata Cable & Broadband Pariseva Ltd were arrested today, as the firm had not paid service tax to the tune of Rs 5.52 crore to the government exchequer.

The arrest of the two officials of Kolkata Cable & Broadband Pariseva Ltd came close on the heels of Union Finance Minister P Chidambaram’s visit to the city two days ago.

Talking tough, Chidambaram on Tuesday warned the business community here that the government would use provisions of arrests and prosecutions against ‘chronic’ service tax evaders.

KK Jaiswal, service tax commissioner of Kolkata, on Thursday said two persons, namely Bijoy Kumar Agarwal, managing director, and Prasun Kumar Das, director of Kolkata Cable & Broadband Pariseva Ltd, were arrested.

"The firm, engaged in providing service as an MSO, is collecting service charges regularly. Investigation revealed that they have collected service tax around Rs 5.52 crore, but have not deposited the same to the government. This is a cognizable offence and punishable upto seven years of imprisonment. Both the persons have been produced before the Alipore Court," Jaiswal addressed at a media interaction.

He said the amount of tax was due for the period of 2008-09 to 2012-13.

"Steps are being taken to recover the amount," Jaiswal added.

Earlier, Chidambaram said the government had arrested 13 people across the country in connection of tax evasions.