GST paid by Secured Creditor on sale of movable assets to be treated as it is made on behalf of Liquidator – Liquidator of M/s. Aegan Batteries Ltd. – NCLT Bengaluru Bench
July 27, 2022
R-1, SBI Stressed Assets Management Branch Bangaluru has realised Rs.16.51 crores against the sale of Land & Building and Plant & Machinery which is forming part of their security interest on 07.08.2020 through private treaty under SARFAESI. Consequent to the sale, the R-1 has informed the Liquidator about the payment of GST amount of which is applicable for sale of movable assets under the provisions of Goods and Service Act, 2017, directly remitted to the of Government authority instead of remitting through the Liquidator.
The Adjudicating Authority held that in the circumstances and for the reasons mentioned in the Application, we hereby direct the R-2 i.e., Assessing Officer-LVO-090, Goods & Services Tax, to take note of the GST of remitted by the R-1 i.e., SBI as if it is made on behalf of the Liquidator / Corporate Debtor, and thus the said amount remitted by R-1 i.e., SBI to the Government account is deemed as fulfillment of the compliances requirement of GST Rules of the Liquidator/ Corporate Debtor.
