TaxTMI 
TaxTMI 
2024 (5) TMI 806
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.... With CIVIL APPLICATION (FOR AMENDMENT) NO. 1 of 2024 In R/TAX APPEAL NO. 40 of 2007 With CIVIL APPLICATION (OJ) NO. 2 of 2007 In R/TAX APPEAL NO. 40 of 2007 With CIVIL APPLICATION (OJ) (FOR ADDITIONAL EVIDENCE) NO. 2 of 2024 In R/TAX APPEAL NO. 40 of 2007 HONOURABLE MR. JUSTICE BHARGAV D. KARIA And HONOURABLE MR. JUSTICE NIRAL R. MEHTA MR SIDDHARTH H DAVE(5306) FOR THE APPELLANT(S) NO. 1 MR DIPEN DESAI(2481) FOR THE OPPONENT(S) NO. 1 ORDER ( PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA ) [1] R/Tax Appeal No.1270 of 2006 arises out of the order dated 4th April 2006 passed in Appeal No.C/19 to 21/06 Mum by the Customs, Excise and Service Tax Appellate Tribunal, West Zonal Bench, Mumbai (for short, "the Tribunal") under Sec....
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....ngs under the provisions of the IBC. [4] M/s. Patanjali Foods Limited has been declared successful in the resolution process to take over M/s. Ruchi Soya Industries Limited and the Resolution Plan was approved by the National Company Law Tribunal vide order dated 24th July 2019. [5] It was submitted that similar facts were recorded by this Court vide order dated 25th August 2022 passed in R/Tax Appeal No.32 of 2019, holding that the said R/Tax Appeal No.32 of 2019 is required to be disposed of as having become infructuous and abated with regard to any liability of any nature whatsoever having extinguished in view of the implementation of the Resolution Plan and change in management and control of the assessee in view of the provisions of....
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....deposited by the appellant at the time of admission of the appeals along with interest accrued thereon is directed to be refunded to the appellant." 8. In the facts of the present case also, no claim was filed by the appellant-Commissioner of Customs with regard to demand after the issuance of the notice under IBC for initiation of the resolution process before the Resolution Professional. 9. In terms of the provisions of the IBC, Resolution Plan was approved by the Committee of Creditors on 20.04.2019 and thereafter the same was approved by NCLT and the corporate insolvency resolution process was completed on 6.09.2019. It is also not in dispute that plan has been successfully implemented and consequently change in contro....
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....9;subject to requirements of this sub-section having fulfilled." 11. In view of above provisions which clarifies that upon completion of corporate insolvency resolution process, even liability of corporate debtor for an offence committed earlier would cease and hence the appellant department cannot proceed further with the present appeal in absence of any claim lodged with the Resolution Professional during the insolvency resolution process before the NCLT. 12. Section 31 of the IBC is also amended with effect from 16.08.2019 and reads as under: "1) If the Adjudicating Authority is satisfied that the resolution plan as approved by the committee of creditors under sub-section (4) of section 30 meets the requirement....
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....erefore will be effective from the date on which I&B Code has come into effect; 102.3. Consequently all the dues including the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the Adjudicating Authority grants its approval under Section 31 could be continued. " 14. Thus taking into consideration the fact of the completion of the resolution process of the respondent by the NCLT and undisputed fact that the appellant has not lodged any claim in the capacity of the Operational Creditor before the Resolution Professional, this appeal is requ....