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TMI Blog2023 (7) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... t lreo Rise as the same has not been incorporated in the Approved Resolution Plan. Further the New Management viz. M/s One Group Developers can also not be held liable for the liability of M/s. Puma Realtors Pvt. Ltd. of not passing on the benefit of ITC to the eligible home- buyers/recipients under Section 171 of the CGST Act, 2017 in view of the NCLT order dated 01.06.2021 - the proceedings already initiated against the Respondent viz. M/s. Puma Realtors Pvt. Ltd. for determining the benefit of Input Tax Credit under Section 171 of the CGST Act, 2017 and rules made there under, with regard to the project 'Ireo Rise' shall be discontinued henceforth. Whether directions to investigate M/s One Group Developers which has taken over the project lreo Rise' as per NCLT's Order dated 01.06.2021, under section 171 of CGST Act 2017 and CGST Rules, 2017 be passed or not? - HELD THAT:- It is revealed from the material brought on record that by virtue of Order dated 01.06.2021 of the NCLT, the management of M/s. Puma Realtors Pvt. Ltd. (Respondent) has been taken over by M/s One Group Developers under the Code. It is also revealed that M/s One Group Developers is collecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 171 of CGST Act, 2017 reiterates its directions to the DGAP as made under Interim Order No. 14/2019 dated 21.10.2019 and requires the DGAP to discharge his responsibilities of investigation on supplies made by the Respondent in his Project Ireo Rise under Section 171 of CGST Act, 2017 and CGST Rules, 2017. ii. The DGAP has submitted that accordingly, vide letter dated 25.08.2022, the Respondent was requested to furnish the requisite information/ documents. 3. The DGAP vide his Report dated 31.01.2023 has inter-alia also submitted that in response to the letter dated 25.08.2022 and subsequent reminders dated 08.09.2022 and 15.09.2022, the Respondent vide his letters/e-mails dated 08.09.2022, 20.09.2022, 04.11.2022 and 09.11.2022 has submitted that:- a. By virtue of the order dated 17.10.2018 passed by the Hon'ble National Company Law Tribunal, New Delhi (hereinafter referred to as the NCLT ), the Respondent has undergone Corporate Insolvency Resolution Process ( CIRP ). Thereafter, the Consortium of One City Infrastructure Pvt. Ltd. and APM Infrastructure Pvt. Ltd. had submitted the Resolution Plan for the Respondent. The said Resolution Plan was approved by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... keholders after it gets the seal of approval from the Adjudicating Authority upon his satisfaction, that the resolution plan approved by CoC meets the requirement as referred to in subsection (2) of Section 30 is, that after the approval of the resolution plan, no surprise claims should be flung on the successful resolution applicant. The dominant purpose is, that he should start with fresh slate on the basis of the resolution plan approved d. The Respondent has also stated that no action qua the dues relating to the GST could be taken against the new management as well as the Respondent under Section 171 of the above Act. It has been further stated that the new management has protection from the offences committed by the previous management of the Respondent, in terms of Section 32A of the Code and in fact, the Respondent is not even liable to pay the dues, if any, pertaining to the pre-CIRP period, after the approval of the Resolution Plan, if the same were not taken into consideration in the Resolution Plan. Section 32-A of the Code is reproduced herein below for ready reference: 32A. (2) No action shall be taken against the property of the corporate debtor in rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the CGST Act, 2017. b. As regards the issue of profiteering the same could not be concluded because the Respondent did not furnish the requisite documents required for concluding the investigation to ascertain as to whether there is any benefit of ITC which has accrued to the Respondent and if so whether the said benefit of ITC has been passed on to the home buyers in whose case demands had been raised or advances had been received post GST. c. Further vide his letter dated 25.10.2021, DGAP's Senior Standing Counsel Shri Zoheb Hossein has opined that the claims/benefit that could not be quantified because of the non-submission of the documents by M/s Puma Realtors Pvt. Ltd. would stand extinguished and the Resolution Applicant viz. M/s One Group Developers cannot be held accountable for the actions of the Respondent for not passing of the benefit of ITC to the eligible recipients under Section 171 of the CGST Act, 2017 after approval of the Resolution Plan. d. The claims/benefit could not be quantified because of the non-submission of the documents by the Respondent. Further, any claim on Respondent would stand extinguished in view of the order of NCLT date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the New Management viz. M/s One Group Developers can also not be held liable for the liability of M/s. Puma Realtors Pvt. Ltd. of not passing on the benefit of ITC to the eligible home- buyers/recipients under Section 171 of the CGST Act, 2017 in view of the NCLT order dated 01.06.2021. Accordingly, the proceedings already initiated against the Respondent viz. M/s. Puma Realtors Pvt. Ltd. for determining the benefit of Input Tax Credit under Section 171 of the CGST Act, 2017 and rules made there under, with regard to the project 'Ireo Rise' shall be discontinued henceforth. b. Issue No. 2: It is revealed from the material brought on record that by virtue of Order dated 01.06.2021 of the NCLT, the management of M/s. Puma Realtors Pvt. Ltd. (Respondent) has been taken over by M/s One Group Developers under the Code. It is also revealed that M/s One Group Developers is collecting the outstanding installments from the homebuyers/recipients for the project 'Ireo Rise' and is also collecting GST thereon. It is further revealed that the CC has not been issued till date in respect of this project and it is still under execution. Hence M/s One Group Developers is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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