Liability to pay GST/Service Tax: Karnataka HC rules verification and Satisfaction by official liquidator required

The Karnataka High Court has ruled that an Official Liquidator must verify and satisfy themselves regarding the liability to pay GST or service tax before settling claims. In the case of the winding up of a company, the Court emphasized the need for thorough verification to ensure that all dues are cleared before the final settlement. This ruling underscores the responsibility of Official Liquidators to address and resolve tax liabilities, ensuring compliance with GST and service tax regulations during the liquidation process.