GST officers arrest person for defrauding exchequer Rs 13.76 crore
Based on investigation, it appeared that PSR Metals was involved in using bazaar scrap to manufacture battery lead and was using the input tax credit of fresh batteries while clearing these new batteries without issuance of invoices.
March 02, 2021 / 09:01 AM IST
Goods and Services Tax (GST) officers have arrested a person for defrauding exchequer worth Rs 13.76 crore by clearing goods without issuing invoices, the Finance Ministry said on March 1.
Pradeep Jain, director of PSR Metals and a resident of Muzaffarnagar in UP has been arrested by the Gurugram Zonal Unit of Directorate General of GST Intelligence, as per a statement.
It added that during investigation, Jain claimed to procure both old and non-guarantee batteries from various registered and unregistered dealers and also claimed to manufacture lead from old batteries and doing trading of new batteries.
However, verification with their suppliers revealed that they had sold only fresh batteries to PSR Metals, the statement said. Under GST, old or scrap batteries are taxed at 18 percent, while new or fresh batteries are taxed at 28 percent.
The ministry said that based on investigation, it appeared that the company was involved in using bazaar scrap to manufacture battery lead and was using the input tax credit (ITC) of fresh batteries while clearing these new batteries without issuance of invoices.
"Pradeep Jain found to have defrauded the exchequer in excess of Rs 13.76 crore by clearance of goods without issue of invoices. He was therefore arrested on February 27 under Section 69 of the Central GST Act, 2017. The Magistrate sent him to Tihar Jail for 10 days' judicial custody," the ministry added.