Haier, Godrej, Blue Star Get ₹6.8 Cr. Tax Claims

Indian Tax authorities have issued show-cause notices to major consumer electronics manufacturers, namely: Haier Appliances India, Godrej & Boyce, and Blue Star Limited, for an alleged wrongful claim of a total of around Rs. 6.8 crore in Input Tax Credit (ITC). This notice was sent on 27th August 2026.

WEEE-PRO Generated Invoices Without Physical E-Recycling

The notices stem from invoices created by third-party e-waste management vendor, WEEE-PRO Resource Recovery Solutions Private Limited. WEEE-PRO, contracted by the three major companies, was responsible for managing their e-waste recycling so that the companies could meet their statutory Extended Producer Responsibility (EPR) Targets.

According to the tax authorities, WEEE-PRO issued invoices without executing physical collection, transportation, dismantling, or recycling of e-waste.

As per media reports, the notice included photographs of trucks, from first laden with e-waste to later empty, but alleged that the images were digitally altered. One example cited includes a 2024 photograph carrying a timestamp of 7:43 ⁠p.m., or ​29 minutes after sunset, on which investigators wrote, “bright daylight, an illuminated sky and pronounced natural shadows”.

“The photographic ​evidence was manipulated or fabricated and was utilised to falsely substantiate the alleged physical movement of e-waste,” the notice said.

WEEE-PRO defended, saying they never used these photographs for commercial purposes and “learning Photoshop was not a crime”.

Failed to Verify Recycling Operations Before Claiming ITC

Under Indian Government’s framework, such consumer electronics manufacturers are mandated to comply with and fulfil EPR targets. To accomplish these EPR targets, manufacturers contract government-registered recyclers to process electronic waste on their behalf. Consequently, companies are required to actually meet this standard before claiming Input Tax Credits (ITC).

Authorities allege that the three appliance majors failed to independently verify if WEEE-PRO is actually performing the recycling operations before claiming the tax credits against invoices issued by this vendor.

The notice said that the three companies “admitted that they had not independently verified the actual collection, transportation, ​receipt, dismantling or recycling of the e-waste”.

Appliance Makers’ Stance Following Show-Cause Notice

As per reports, off the total approx. ₹6.8 Cr. ITC claims, Haier availed approx ₹3.5 crore, Godrej & Boyce claimed approx ₹1.5 crore, and Blue Star claimed approx ₹1.8 crore.

All three appliance manufacturers have said that they would respond to the notice, continue to cooperate with authorities, and remain committed to legal compliance.

Further, Godrej & Boyce highlighted that the vendor held authorizations from the government. Blues Star noted that they had no reason to believe any irregularities but have ceased dealing with WEEE-PRO.