DGAP Vs Puma Realtors Pvt Ltd (GSTAT)
In the case of DGAP vs. Puma Realtors Pvt Ltd, the Goods and Services Tax Appellate Tribunal (GSTAT) closed an anti-profiteering investigation, ruling that an approved resolution plan under the Insolvency and Bankruptcy Code (IBC) extinguishes all claims not included in the plan. The matter came before the Tribunal after the Directorate General of Anti-Profiteering (DGAP) reported that its investigation into M/s Puma Realtors Pvt. Ltd. was stalled. The company had been declared insolvent, and M/s One Group Developers Pvt. Ltd. had taken over its assets and liabilities following a final order by the National Company Law Tribunal (NCLT) on June 1, 2021. The DGAP’s investigation sought to quantify and pass on the benefit of Input Tax Credit (ITC) to eligible recipients, a claim that was not included in the approved resolution plan.
To resolve the impasse, the DGAP sought a legal opinion on two key issues: first, whether the unquantified anti-profiteering benefit falls under the ambit of the IBC, which could not be completed due to the company’s non-cooperation; and second, whether the new company, the Resolution Applicant, could be held accountable for passing on this benefit under Section 171 of the Central Goods and Services Tax (CGST) Act, 2017.
