Customs dues must be paid through the insolvency waterfall under Section 53, with the appeal disposed on that basis.

The Customs department's dues were clarified to fall for payment under the statutory waterfall in Section 53 of the Insolvency and Bankruptcy Code, 2016, rather than outside the insolvency distribution framework. The Court noted that limitation required consideration, but it did not undertake a detailed adjudication or remand; instead, it disposed of the appeal with the clarification that the claim must be dealt with in accordance with the insolvency waterfall mechanism.

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Issues: Whether the dues of the Central Board of Indirect Taxes and Customs were required to be paid in accordance with the distribution waterfall under Section 53 of the Insolvency and Bankruptcy Code, 2016.

Analysis: The order records that the question of limitation required consideration, but instead of entering into a detailed adjudication or ordering remand, the Court accepted disposal of the appeal with a specific clarification regarding the manner in which the dues were to be paid. The clarification ties the claim of the Customs department to the statutory waterfall under the insolvency framework.

Conclusion: The dues of the Customs department are to be paid in accordance with the waterfall mechanism under Section 53 of the Insolvency and Bankruptcy Code, 2016, and the appeal stands disposed of on that basis.

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