Sale of Assets of Company-in-Liquidation by Liquidator Constitutes Supply of Goods/Services Under GST | AAR

Case Details: Maheshwary Ispat Ltd., In re - [2025] 173 taxmann.com 289 (AAR-WEST BENGAL)

Judiciary and Counsel Details

• Dr. Tanisha Dutta & Joyjit Banik, Members
• Santanu Brahma, Liquidator for the Appellant.

Facts of the Case

The company was undergoing liquidation, with the appointed Liquidator acting under the orders of the Hon’ble NCLT, Kolkata Bench. The Liquidator intended to sell the company’s assets to discharge the company’s outstanding liabilities as part of the liquidation process. In this context, the applicant sought an advance ruling from the West Bengal Authority for Advance Ruling (AAR) under Section 97 of the CGST Act and West Bengal GST Act, to clarify whether the sale of such assets would constitute a supply of goods or services under GST.

AAR Held

The Hon’ble West Bengal AAR held that the sale of assets by the Liquidator, in the process of liquidation, constitutes a supply of goods and/or services within the meaning of Section 7 of the CGST Act. The AAR clarified that even though the company is under liquidation, the act of selling its assets is considered a taxable supply under GST, as it falls within the ambit of the statutory definition of ‘supply’ under the law.

List of Cases Reviewed

• Mansi Oils and Grains (P.) Ltd., In re [2020] 117 taxmann.com 446/80 GST 502/38 GSTL 626 (AAR – WEST BENGAL) (para 4.7) followed.

List of Cases Referred to

• Mansi Oils and Grains (P.) Ltd., In re [2020] 117 taxmann.com 446/80 GST 502/38 GSTL 626 (AAR – WEST BENGAL) (para 46).