TaxTMI 
TaxTMI 
2026 (2) TMI 1161
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.... Kochar, Advocates. For the Respondent(s) : Mr. Krishnendu Datta, Sr. Advocate with Mr. Palash Singhai, Mr. Harshal Sareen, Ms. Aashima Gautam and Mr. Yash Tandon, Advocates for R2. Mr. Vinod T. Agarwal, RP in Person. ORDER CA (AT) (Ins.) No. 1798 of 2025, CA (AT) (Ins.) No. 1799 of 2025 and CA (AT) (Ins.) No. 2051 of 2025: All these Appeals arise out of common facts and from the same CIRP, are being heard and decided together. 2. CA (AT) (Ins.) No. 1798 of 2025 has been filed by Raj Radhe Finance Ltd., lead Financial Creditor challenging the order dated 06.11.2025 by which Adjudicating Authority has rejected IA (Plan)/15 (AHM)/2025. 3. CA (AT) (Ins.) No. 1799 of 2025 has been filed by Successful Resolution Applicant chall....
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.... of 2025 allowed the application of the State Tax Officer and declared the State Tax Officer in so far as CST dues are concerned as secured creditor. 9. We have heard Ld. Counsel for the Appellant, who is Financial Creditor as well as Ld. Counsel for the SRA, Ld. Counsel for the State Tax Officer and Ld. Counsel for the RP. 10. Ld. Counsel for the Appellant challenging the order in so far as Adjudicating Authority rejected the plan approval application submits that only reason which is given in the order is that the plan does not treat the claim of the dues of Central Sales Tax as secured debt, hence, the plan is not compliant under Section 30(2) and deserve to be rejected. It is submitted that the law is already settled by the Judgme....
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....ity has made following observation: "18. It is further observed that the plan was approved by 68.18% voting which is by only 1 financial creditor i.e. Rajradhe Finance Limited the remaining COC has either dissented or abstained from the voting. On perusing form-H annexed to the application it is observed that the resolution plan has not appropriately apportioned the amount payable to the different creditors. Moreover, they have not treated State Tax department's dues qua CST as secured creditors. Hence, the plan is not fulfilling the required provisions of Section 30(2) of the IBC." 15. The question as to whether the dues of State Tax Department under the Central Sales Tax Act are secured debt or not has already been conside....
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....tate; and the provisions of such law, including provisions relating to returns, provisional assessment, advance payment of tax, registration of the transferee of any business, imposition of the tax liability of a person carrying on business on the transferee of, or successor to, such business, transfer of liability of any firm or Hindu undivided family to pay tax in the event of the dissolution of such firm or partition of such family, recovery of tax from third parties, appeals, reviews, revisions, references, refunds, rebates, penalties, charging or payment of interest, compounding of offences and treatment of documents furnished by a dealer as confidential, shall apply accordingly: Provided that if in any State or part thereof t....
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....s was applicable in the general sales tax laws, but the provision of creating first charge on the assets of the CD is absent in Section 9 sub-section (2), nor it can be impliedly imported with respect to dues under CST Act. We, thus, are of the view that Adjudicating Authority did not commit any error in not accepting the claim of the Appellant insofar as central dues of CST Act are concerned. We, thus, are not persuaded to accept the submission of the Appellant that dues under CST Act has to be treated as secured debt. 16. There is no dispute between the Ld. Counsel for the parties that the law has been declared by this Tribunal in the above case has clearly held that Central Sales Tax dues are not secured debt. In view of the aforesaid....