Resolution plan extinguishing government dues rendered the tax demand unrecoverable and the appeal infructuous.

Approval of the resolution plan by the NCLT was treated as extinguishing government dues outstanding on that date, so the demand under challenge was no longer recoverable. On that basis, the appeal was held to have become infructuous and was dismissed. The Tribunal noted a request to enforce compliance with the CBIC circular, but left the Revenue to proceed in accordance with that circular and the law. The request for refund of the pre-deposit was not examined because that relief was outside the scope of the appeal.

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Issues: Whether the appeal had become infructuous in view of approval of the resolution plan and consequent extinguishment of the government dues.

Analysis: The resolution plan approved by the NCLT was treated as having extinguished the government dues outstanding as on the date of that order. In that situation, the demand under challenge was held no longer recoverable. The request to compel compliance with the CBIC circular was noted, but the Tribunal held that the Revenue may deal with the matter in accordance with the circular and law. The request for refund of pre-deposit was not decided because the subject matter of the appeal did not include that relief.

Conclusion: The appeal was held to be infructuous and dismissed accordingly.

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