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.