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2021 (5) TMI 679 - Tri - Insolvency and BankruptcyCorporate Debtor under liquidation - Liquidator seeking to direct the Respondent No. 1 to deposit the GST along with applicable penalty/late fee and interest from the date of taking over of custody until date of payment to the account of the Corporate Debtor - HELD THAT - Mr. Shivarama Krishnan, Ld. Counsel for the Respondent 1, State Bank of India informed that the GST collected on account of the sale of various assets, as mentioned in the Application and whose transfer to the account of Corporate Debtor has been sought by the Applicant Liquidator, has already been transferred to the account of the Corporate Debtor which is being managed by the Liquidator. It has been stated that the SBI had made a payment of ₹ 32,54,53,666 on 20.04.2019 which included the amount of ₹ 4,60,24,276 which was attributable to the assets of the Applicant Company and the same was intimated by way of letter dated 02.01.2021. A copy of the letter has been attached. Hence, the grievance of the Applicant Liquidator as mentioned in the Petition has been redressed, and hence this Application becomes infructuous. Petition is dismissed as infructuous.
Issues involved:
1. Application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 seeking direction to deposit GST amount. 2. Dispute over payment of GST by Secured Financial Creditor. 3. Compliance with GST laws in the context of liquidation process. Issue 1: Application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 seeking direction to deposit GST amount The judgment pertains to I.A. No. 446 of 2020 in C.P. (IB) No. 20/BB/2017 filed by the Liquidator under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The Liquidator sought direction for the Respondent No. 1 to deposit the GST amount of ?4.46 Crores along with applicable penalty/late fee and interest to enable the Liquidator to make the payment of GST on behalf of the Corporate Debtor. The Liquidator argued that the Respondent No. 1 was required to pay GST as there was a transfer of assets, and the Respondent declined the request, leading to the application. Issue 2: Dispute over payment of GST by Secured Financial Creditor The dispute arose as the Respondent No. 1, the Secured Financial Creditor of the Corporate Debtor, realized a gross amount from the sale of assets forming part of their security interest. The Liquidator contended that the sale and handing over of assets constituted supply of goods attracting GST liability. The Liquidator requested the Respondent to collect and remit the GST amount to the account of the Corporate Debtor for compliance with GST laws. However, the Respondent, based on their opinion, declined the request, leading to the disagreement and subsequent legal action. Issue 3: Compliance with GST laws in the context of liquidation process The Tribunal examined the compliance with GST laws in the context of the liquidation process. During the hearing, it was revealed that the GST collected on the sale of assets had already been transferred to the account of the Corporate Debtor managed by the Liquidator. The Respondent, State Bank of India, confirmed the transfer of the GST amount, addressing the grievance raised by the Liquidator. Consequently, the Tribunal dismissed the application as infructuous, as the issue was resolved with the payment of the GST amount to the Corporate Debtor's account. This detailed analysis of the judgment highlights the key issues involved in the legal dispute regarding the payment of GST in the context of insolvency and liquidation proceedings, emphasizing the application of relevant provisions of the Insolvency and Bankruptcy Code, 2016 and GST laws.
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