2026-VIL-1143-CAL
  1. Home
  2. 2026-VIL-1143-CAL

SGST High Court Cases

GST - Insolvency and Bankruptcy Code, 2016 - Extinguishment of GST dues not claimed in the Corporate Insolvency Resolution process upon approval of the resolution plan - Petitioner was admitted into the corporate insolvency resolution process, the resolution plan was approved by the Adjudicating Authority and attained finality - More than two years after the Effective Date the Respondent issued notice and confirmed demand of IGST ITC with interest and penalty for a period prior to the Effective Date on the footing that the cause of action arose after the moratorium - Whether the dues pertaining to a period prior to the Effective Date, for which no claim was lodged, stood extinguished on approval of the resolution plan - HELD - Section 31(1) of the Code, as amended, makes the approved resolution plan binding on the Central Government, any State Government or any local authority to whom statutory dues are owed, and the CGST authorities are included. Once a plan is approved, claims not forming part of it stand extinguished and no proceeding in respect of them can be initiated or continued - A successful resolution applicant cannot be faced with undecided claims. The tax period fell wholly before the Effective Date and no claim was lodged, so the demand stood extinguished and both the show cause notice, being the very initiation of a proceeding under Section 73, and the Order-in-Original, being its culmination, are proceedings in respect of an extinguished claim - The finding that the cause of action arose after the moratorium does not help, as the portion arising during the process was equally required to be brought to the notice of the Resolution Professional. The plan itself, by its clause on treatment of Government authorities, extinguishes all pre-Effective Date claims, whether assessed or unassessed, known or unknown - Further, the Board's own circular and instruction record that claims not submitted or submitted belatedly stand extinguished upon approval of the plan - The dues for the financial year, with interest and penalty, stood extinguished on approval of the plan - The show cause notice, the Order-in-Original, the summary in Form GST DRC-07, all proceedings thereunder and the notice demanding interest for delayed filing of returns are quashed and set aside - The writ petition is maintainable and is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?