Liquidation abatement of appeal where no continuance application is made by the liquidator under procedural rules.

Where a company is placed in liquidation and the liquidator does not seek continuance of the appeal under Rule 22 of the CESTAT (Procedure) Rules, 1982, the proceedings do not survive. The Tribunal noted that the departmental claim had not been registered in the liquidation process in relation to the disputed demand, and referred to the liquidation framework under the Insolvency and Bankruptcy Code, 2016. On that basis, and in line with the settled position that unregistered claims may stand extinguished, the appeal abated and could not be heard on merits.

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Issues: Whether the appeal survived after the appellant company was ordered into liquidation and no application was made for continuance of the proceedings by the liquidator.

Analysis: The appellant company had been placed under liquidation, and the Tribunal noted that the departmental claim had not been registered in the liquidation proceedings in respect of the disputed demand. In the absence of any application by the liquidator for continuance of the appeal under Rule 22 of the CESTAT (Procedure) Rules, 1982, the proceedings could not be continued. The Tribunal also referred to the settled position that claims not forming part of the resolution plan stand extinguished, and to the liquidation framework under the Insolvency and Bankruptcy Code, 2016.

Conclusion: The appeal abated and could not be proceeded with.

Final Conclusion: The matter was disposed of without adjudication on the tax demand, as the proceedings ceased to survive in view of liquidation and the absence of a continuance application.

Ratio Decidendi: Where a company is in liquidation and no application is made for continuance of the appeal by the liquidator under the applicable procedural rule, the appeal abates and cannot be heard on merits.

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