2026-VIL-1571-CESTAT-CHE-CU
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CUSTOMS CESTAT Cases

Customs – Maintainability of appeal after approval of resolution plan under Insolvency and Bankruptcy Code, Binding effect of NCLT approval on statutory dues claims – Appellant company was subject to Corporate Insolvency Resolution Process under IBC. NCLT approved resolution plan under Section 31(1) of IBC. Customs appeal was pending before CESTAT challenging statutory dues payable to Central Government for period prior to resolution plan approval. Revenue authority continued proceedings in appeal - Whether ongoing customs proceedings can be continued when resolution plan is approved by NCLT for claims not forming part of resolution plan – HELD – Once a resolution plan is approved by Adjudicating Authority (NCLT) under Section 31(1) of IBC, claims provided in resolution plan stand frozen and become binding on Corporate Debtor and all creditors including Central Government and any State Government or local authority. All claims not part of resolution plan stand extinguished on date of NCLT approval and no person is entitled to initiate or continue any proceedings in respect of claims not forming part of resolution plan - Supreme Court in Ghanashyam Mishra and Sons case held that 2019 amendment to Section 31 of IBC is clarificatory and declaratory in nature. Central Government and State Governments are bound by resolution plan as they constitute operational creditors under IBC provisions. Even without 2019 amendment, statutory dues owed to Central Government would be covered by term creditor and other stakeholders under Section 31(1) of IBC. All statutory dues owed to Central Government not part of resolution plan stand extinguished and no proceedings in respect of such dues for period prior to NCLT approval could be continued. Neither party informed Tribunal whether statutory dues under contest were part of resolution plan or not. In any event, present appeal cannot be continued as it relates to period prior to NCLT approval and falls outside scope of approved resolution plan – Proceedings stand concluded and no further action can be taken on appeal – The appeal is disposed of
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