https://www.taxtmi.com/caselaws?id=753098 The NCLAT dismissed an appeal by a tax authority seeking treatment of VAT/Sales Tax dues as secured claims during liquidation. The tribunal held that assessment orders passed during moratorium under Section 14 of IBC were correctly classified as unsecured operational debt. The appellant illegally maintained property attachments despite court orders to lift them. Unlike the Rainbow Paper case involving VAT Act provisions granting first charge rights, Gujarat Sales Tax Act contained no similar secured creditor provisions. The tribunal rejected arguments that the 330-day resolution timeline was mandatory, noting it was directory in nature. The resolution plan approved by CoC properly classified tax dues as unsecured debts under Section 53 waterfall arrangement. en-us Mon, 20 May 2024 00:00:00 +0530 Fri, 24 May 2024 21:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753098 The NCLAT dismissed an appeal by a tax authority seeking treatment of VAT/Sales Tax dues as secured claims during liquidation. The tribunal held that assessment orders passed during moratorium under Section 14 of IBC were correctly classified as unsecured operational debt. The appellant illegally maintained property attachments despite court orders to lift them. Unlike the Rainbow Paper case involving VAT Act provisions granting first charge rights, Gujarat Sales Tax Act contained no similar secured creditor provisions. The tribunal rejected arguments that the 330-day resolution timeline was mandatory, noting it was directory in nature. The resolution plan approved by CoC properly classified tax dues as unsecured debts under Section 53 waterfall arrangement. Case-Laws Insolvency and Bankruptcy Mon, 20 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753098