Continuation of ITAT appeals during IBC moratorium affirmed; assessment permitted but recovery stayed, appeals restored for merits.

Continuation of appellate proceedings during an IBC moratorium permits determination of tax liability while recovery is stayed; accordingly, tax claims must be lodged with the resolution professional or liquidator and dealt with under the insolvency distribution mechanism, preventing execution during the moratorium. Appellate adjudication before the tribunal constitutes only determination of tax liability and therefore does not attract the moratoriums prohibition on proceedings, permitting revival of appeals. Filing of an updated process document bringing the corporate resolution professional on record removes procedural impediments to recalling and restoring appeals for adjudication on merits.

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Issues: Whether the Tribunal can recall and restore appeals filed by the Revenue for adjudication on merits despite the moratorium under the Insolvency and Bankruptcy Code, 2016.

Analysis: The legal framework comprises the moratorium provisions of the Insolvency and Bankruptcy Code, 2016 (notably Sections 14 and 33(5)) and the mechanism for dealing with creditor claims under Section 53. Binding precedent holds that revenue authorities retain jurisdiction to assess or determine tax liability during the moratorium but are barred from initiating recovery; claims must be submitted to the resolution professional/liquidator and dealt with under the IBC waterfall mechanism. The Revenue has filed a revised Form No. 36 placing the resolution professional on record, thereby satisfying the procedural requirement for representing its claim in appellate proceedings. The Tribunal applied these principles to conclude that appellate adjudication amounts to determination of tax liability (not recovery) and is not barred by the moratorium, permitting recall and restoration of the appeals for hearing on merits.

Conclusion: Miscellaneous applications filed by the Revenue are allowed and the appeals are recalled and restored to their original numbers for adjudication on merits.

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