AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 1082
X X X X Extracts X X X X
X X X X Extracts X X X X
...., the learned Advocate appearing for the petitioners submits that the petitioners are not pressing prayer (c) in the writ petition whereby the petitioners have sought for quashment of Notification No. 56 of 2023-Central Tax dated 28 December, 2023 issued by the Respondent No. 1. Accordingly, this writ petition is being taken up only in respect of prayers other than prayer (c). 2. This writ petition assails an order in original dated August 31, 2024 passed by the Joint Commissioner, CGST and Central Excise, Kolkata North Commissionerate under Section 73 of the CGST Act, 2017 whereby the petitioner no. 1 has been saddled with a tax demand of Rs. 4,28,33,922/- together with interest thereon and penalty for the tax period April 2019 to March....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lan by the Adjudicating Authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan. The Hon'ble Supreme Court further laid down that all the dues including the statutory dues owned to the Central Govt, any State Govt 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. 22. With respect to the waivers sought in relation to guarantors, the judgment of Lalit Kumar Jain v....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... such sale having been confirmed by the NCLT, the petitioner no. 1 can no longer be held liable for the past dues (i.e. dues prior to the date of sale as going concern and its confirmation) especially in view of the order passed by the NCLT, whereby it was observed that 'the sale of a corporate debtor as a going concern is akin to a de-facto CIRP'. It is submitted that the "clean state" principle applicable to corporate debtors having undergone successful CIRP would be equally applicable to the petitioner no. 1 as well. In support of such contention, attention of this Court is also drawn to an order in original dated January 17, 2025 whereby the respondent / CGST authorities themselves dropped a proceeding initiated against the petitioner N....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... others, reported at2022 SCC OnLine Cal 4617 : (2023) 21 Comp Cas-OL 718 has discussed the scope of Section 53 in the context of a corporate debtor that is sold in liquidation as a going concern. Paragraph 51 to 58 of the report are relevant to the context. The same are extracted hereinbelow: "51. Hence, the powers of the liquidator are on a similar footing as those of a resolution professional in a resolution proceeding. It is also noteworthy that section 5(18) of the IBC stipulates that a liquidator has to be a resolution professional in the first place. 52. Section 53 provides for distribution of assets in liquidation and sets out the order of priority of distribution of proceeds from the sale of the liquidation assets.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ovides that where the committee of creditors has not identified the assets and liabilities under sub-regulation (2) of regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the liquidator shall identify and group the assets and to be solid as a going concern, in consultation with the consultation committee. 57. It is evident from the scheme of the IBC, in respect of liquidation, is that the pecking order as stipulated in section 53 of the IBC cannot be superseded by any of the categories as provided therein. The said provision is set out below for convenience: "53. Distribution of assets.-(1) Notwithstanding anything to the contrary contained....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g) preference shareholders, if any ; and (h) equity shareholders or partners, as the case may be. (2) Any contractual arrangements between recipients under sub-section (1) with equal ranking, if disrupting the order of priority under that sub-section shall be disregarded by the liquidator. (3) The fees payable to the liquidator shall be deducted proportionately from the proceeds payable to each class of recipients under sub-section (1), and the proceeds to the relevant recipient shall be distributed after such deduction. Explanation. - For purpose of this section- (i) It is hereby clarified that at each stage of the distribution of proceeds in respect of a class of recipients that rank equally, e....