# In the matter of Gupta United Energy Pvt. Ltd.

> NCLT judgment dated 2023-11-22. Citation: TCN-2023-NCLT-00632. This case involves two Interlocutory Applications (IAs) filed in the liquidation proceedings of…

- **Court:** NCLT
- **Order date:** 22 Nov 2023
- **Citation:** TCN-2023-NCLT-00632
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gupta-united-energy-pvt-ltd-723f2cd2

## Summary

### Background

This case involves two Interlocutory Applications (IAs) filed in the liquidation proceedings of Great United Energy Pvt Ltd. IA 372/2021 was filed by Bansal Ship Breakers, the auction buyer, seeking a refund of Rs. 59.58 Lakhs collected as GST on the sale of a vessel, along with additional costs incurred due to the liquidator's non-compliance. IA 820/2021 was filed by the liquidator seeking directions to the auction buyer for payment of Rs. 42,90,161/- towards port charges. The corporate debtor, Great United Energy Pvt Ltd, was admitted into Corporate Insolvency Resolution Process (CIRP) on 26.6.2018 and subsequently ordered into liquidation on 13.2.2019.

## Facts

Great United Energy Pvt Ltd was admitted into CIRP on 2018-06-26 and subsequently ordered into liquidation on 2019-02-13. A tender document dated 2019-12-20 was issued for the e-auction of the vessel 'Adinath One' on an 'as is where is' basis. Bansal Ship Breakers was declared the successful bidder on 2020-02-01. The auction buyer failed to pay the balance amount within the stipulated time, leading to forfeiture of the deposited amount. The auction buyer then filed MA 200/2020 seeking direction for payment of the balance amount with 5% GST instead of 18% GST, which was dismissed. The auction buyer paid GST of Rs. 59.58 lacs and the auction price of Rs. 331.00 lacs, and the liquidator issued a revised sale certificate on 2020-02-26. The liquidator failed to handover

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## Issues and analysis

### Issue 1: Whether the Liquidator was justified in collecting GST on the sale of the vessel to the Auction …

**Ratio:** The legal principle is that custom duty or IGST is payable on the gross value of goods

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**Reasoning:** The Tribunal reasoned that since the auction sale had already suffered tax at the time of

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**Interpretation:** This issue involves the interpretation of GST laws related to imported goods

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**Application:** Applying the ratio and reasoning to the facts, the Tribunal found that the

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Bansal Ship…
- **Respondents:** GREAT UNITED…

## Timeline

- **2018-06-26 — CIRP Admi…**: Corporate Debtor admitted into Corporate…
- **2019-02-13 — Liquidation…**: Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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