The Managing Director of a firm providing clearing and forwarding services, steamer agency services and custom house agency services has been arrested for service tax evasion of over ?1.38 crore, according to a press release by the Central Excise and Service Tax Commissionerate of Mangaluru. M Subramanyam, Commissioner of Central Excise and Service Tax, Mangaluru, said in a press release on Wednesday that the service provider was arrested on April 26 and produced in court. He was remanded to judicial custody for 14 days.