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 Monday.
The Gurugram Zonal Unit of Directorate General of GST Intelligence has arrested a resident of Muzaffarnagar in UP, Pradeep Jain, who is director of PSR Metals Pvt Ltd, it said in 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.
Old or scrap batteries are taxed at 18 per cent, while new or fresh batteries are taxed at 28 per cent under goods and services tax (GST). However, verification with their suppliers revealed that they had sold only fresh batteries to PSR Metals Pvt Ltd, the statement said.
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 CGST Act, 2017. The Magistrate sent him to Tihar Jail for 10 days' judicial custody," the ministry added.
(Published 01 March 2021, 19:58 IST)
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