2025 (2) TMI 1299 - HC - GST

Post-approval GST tax demands after IBC resolution plan approval, despite CIRP notice to department; enforcement stayed pending hearing.

The dominant issue was whether post-approval GST demands could be enforced despite an approved resolution plan under the IBC, 2016, where the tax ... Seeking exemption and permission to file a lengthy list of dates - HELD THAT:- There are merit in the challenge which stands raised bearing in mind the undisputed fact of the Resolution Plan having been approved under the Insolvency & Bankruptcy Code, 2016 coupled with the fact that the Goods and Services Tax Department had been duly placed on notice in the course of the Corporate Insolvency Resolution Process - till the next date of listing, there shall be stay of the impugned orders dated 14 November 2024 and 25 November 2024. Interlocutory applications seeking exemption and permission to file a lengthy list of dates in connected writ petitions were allowed 'subject to all just exceptions' and disposed of. In the main writ petitions, notice was issued; respondents, already represented, were directed to file replies within three weeks, with two weeks thereafter for rejoinder. The matter is to be listed on 17.04.2025. On merits, the Court recorded a prima facie view that there is merit in the petitioners' challenge, noting the 'undisputed fact of the Resolution Plan having been approved under the Insolvency & Bankruptcy Code, 2016 [IBC]' and that the Goods and Services Tax Department had been 'duly placed on notice' during the Corporate Insolvency Resolution Process [CIRP]. Reliance was placed on Committee of Creditors of Essar Steel India Limited vs. Satish Kumar Gupta and Ghanashyam Mishra & Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Company Limited. Holding that the matter requires consideration, the Court ordered a stay of the impugned orders dated 14 November 2024 and 25 November 2024 till the next date of listing.