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Judgment
Heard learned counsel for the Appellant as well as Shri Fernandes, learned counsel for Respondent No.2.
Learned counsel appearing for Respondent No.1 prays that name of Respondent No.1 has unnecessarily been impleaded who has no concern with the issued between the parties.
Let the name of Respondent No.1 be deleted from the array of parties.
This is an appeal filed against order of the Adjudicating Authority dated 23.03.2022 passed in I.A. No.1658 (KB) 2019. The Appellant has filed an application seeking directions that the applicant can set off the amount of Rs.15,25,24,056/- allegedly recoverable from the Respondent No.2 as GST claimed for payment of power supplied to Jhabua Power Limited. The Adjudicating Authority dismissed the Application. It was submitted by learned counsel for the Resolution Professionals that no such claim was filed in the proceedings.
Learned counsel for the Appellant submits that Appellant had to pay the said payment to GST Authorities on basis of Summons issued by the authority, hence, they are entitled to set off of the amount.
Learned counsel for Respondent No.2 submits that payment to GST Authorities by the Appellant was made without taking any consent from the Respondent. Learned counsel for the Respondent has relied on Circular dated 03.08.2022 issued by the Ministry of Finance, Department of Revenue, where it has been held that with regard to liquidated damages no GST is payable and such payments do not constitute consideration for a supply and are not taxable.
The payments were made by the Appellant without prior consent of the Respondent, hence, we do not see any reason to interfere with the order of the Adjudicating Authority rejecting the application of the Appellant seeking directions for set off. Appeal is dismissed.