Liquidation and appeal abatement under Rule 22 operate automatically when no continuance application is filed by the liquidator.

Where a company is in liquidation, Rule 22 of the CESTAT Procedure Rules, 1982 requires the liquidator, successor-in-interest or other authorised legal representative to apply for continuance of the appeal within the prescribed time. In the absence of any such application by the liquidator, the appeal abates automatically by operation of the rule. The Tribunal therefore treated the proceedings as terminated and did not adjudicate the tax demand on merits.

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Issues: Whether the appeal abated under Rule 22 of the CESTAT Procedure Rules, 1982 on account of the appellant company having gone into liquidation under the Insolvency and Bankruptcy Code, 2016 and no application having been filed by the liquidator for continuance of the proceedings.

Analysis: The appellant company had undergone corporate insolvency resolution and was subsequently ordered into liquidation, with a liquidator appointed. Rule 22 provides that where a party is adjudicated insolvent or, in the case of a company, is being wound up, the appeal abates unless an application is made for continuance by the successor-in-interest, receiver, liquidator, or other legal representative within the prescribed time. No such application for continuation of the appeal was filed by the liquidator before the Tribunal.

Conclusion: The appeal abated by operation of Rule 22 of the CESTAT Procedure Rules, 1982.

Final Conclusion: The proceedings before the Tribunal stood terminated on account of abatement, and no adjudication on the merits of the tax demand was rendered.

Ratio Decidendi: Where a company in liquidation does not, through its liquidator or other authorised successor, seek continuance of the appeal in the manner required by Rule 22, the appeal abates automatically.

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