TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Appeal Dismissed as Infructuous: Tribunal Lacks Jurisdiction Post-NCLT Approval</h1> The tribunal dismissed the appeal as infructuous following an NCLT order approving a resolution plan that extinguished government dues. It clarified that ... Pending appeals wherein, the IBC proceedings have been concluded by NCLT - as per the NCLT order, all the government dues shall stand extinguished and no government dues including the dues involved in the present appeals is recoverable - HELD THAT:- The NCLT has passed an order by approving resolution plan of the company M/s. Alok Industries Limited in favor of JM Financial Asset Reconstruction Company Limited and Reliance Industries Limited, who are the resolution applicant. Since the IBC proceedings have been concluded in favour of M/s. Arcelormittal Nippon Steel India Ltd., these appeals shall stand infructuous accordingly, we dismiss these appeals as infructuous. Both the sides have liberty, in case of any amicable resolution is not arrived at between the appellant and the respondent, to approach to this tribunal to revive the present appeals and the same shall be decided on merit, if required. Appeal disposed off. Issues involved:1. Disposal of appeals in light of NCLT order extinguishing government dues.2. Competence of tribunal to decide on recovery of dues post NCLT approval.3. Lack of provision in Customs and Central Excise Act regarding NCLT proceedings.4. Dismissal of appeal as infructuous due to NCLT resolution plan.5. Need for CBIC guidelines on handling cases with ongoing IBC proceedings.Issue 1: Disposal of appeals in light of NCLT order extinguishing government duesThe judgment deals with the disposal of appeals following an NCLT order approving a resolution plan that extinguished government dues. The appellant sought disposal of appeals based on the NCLT order, which stated that all government dues, including those involved in the appeals, were not recoverable. The tribunal considered the submissions and found that the appeal had become infructuous due to the NCLT resolution plan. The appeal was dismissed as infructuous, allowing both parties the liberty to approach the tribunal if needed.Issue 2: Competence of tribunal to decide on recovery of dues post NCLT approvalThe tribunal acknowledged the NCLT's approval of the resolution plan, indicating that the respondent was not liable to pay any dues as per the terms of the plan. However, the tribunal clarified that it was not within its jurisdiction to determine the recovery of dues. Citing a Supreme Court judgment, the tribunal emphasized that the decision on the recoverability of dues post-NCLT approval rested with the department and not the tribunal. The absence of explicit provisions in the Customs and Central Excise Act regarding NCLT proceedings further supported the tribunal's stance that the department needed to resolve the issue.Issue 3: Lack of provision in Customs and Central Excise Act regarding NCLT proceedingsThe tribunal highlighted the absence of provisions in the Customs and Central Excise Act to address the implications of NCLT proceedings. Despite the Insolvency and Bankruptcy Code having overriding effect, the tribunal stated that it could not conclusively decide on the recoverability of adjudged amounts due to the lack of explicit provisions in the relevant acts. The tribunal emphasized that the department was responsible for determining the recoverability of dues in light of the NCLT resolution plan.Issue 4: Dismissal of appeal as infructuous due to NCLT resolution planBased on the NCLT's resolution plan and the Supreme Court judgment, the tribunal concluded that the appeal had become infructuous. The tribunal dismissed the appeal as infructuous, allowing for revival and merit-based decision if necessary in the future. The tribunal's decision was aligned with the NCLT's resolution plan, which extinguished government dues and rendered the appeal moot.Issue 5: Need for CBIC guidelines on handling cases with ongoing IBC proceedingsThe tribunal noted the lack of proper guidelines for the revenue department when dealing with cases involving ongoing IBC proceedings before the NCLT or NCLAT. Highlighting the confusion among departmental representatives regarding the appropriate stance to take in such cases, the tribunal recommended that the Central Board of Indirect Taxes & Customs (CBIC) issue guidelines or procedures for handling cases where IBC proceedings are ongoing. The tribunal's suggestion aimed to provide clarity and uniformity in dealing with cases where IBC proceedings impact appeals before the tribunal.Overall, the judgment emphasizes the importance of departmental decisions regarding the recovery of dues post-NCLT approval, highlights the need for statutory provisions to address NCLT implications, and calls for CBIC guidelines to streamline the handling of cases with ongoing IBC proceedings.
TaxTMI 
TaxTMI 
