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2019 (3) TMI 1520 - Tri - Insolvency and BankruptcyCorporate Insolvency Resolution Process - Whether dispute of VAT do not come under the definition of “Dispute” under the Insolvency and Bankruptcy Code? - allegation made by the Corporate Debtor that the Operational Creditor has not paid the sales tax collected from the Corporate Debtor into the Government treasury - whether there is a default of the operational debt of ₹1,00,000/- or more to be paid? - HELD THAT:- This Adjudication Authority is only required to ascertain whether there is a default of the operational debt of ₹1,00,000/- or more to be paid. It is evident from the fact that the default of the operational debt is more than ₹1,00,000/-. Therefore, the plea taken by the Corporate Debtor in respect of VAT is not sustainable. The dispute about non depositing of the VAT amount after its collection is a different issue,but this issue is not covered in the definition of existing dispute. However the issue of VAT has been raised only after receiving the demand notice, which shows that issue of VAT has been raised for creating the defence. The Demand notice demanding payment was served upon the Corporate Debtor, after that, the Corporate Debtor had filed reply to the Demand Notice wherein it had admitted that that it has to pay the Principal amount to the Operational Creditor. As appears from the record that the Corporate Debtor having defaulted in making payment to the operational creditor.As discussed above there being no dispute in respect of the quality of goods or service, the dispute which has been raised after receiving the demand notice is not covered under the meaning of existence of dispute given in the case law of Mobilox supra.Thus saying that dispute is in existence in respect to the services provided by the Operational Creditor is not sustainable. Petition filed by the operational creditor for initiation of Corporate Insolvency Resolution Process is admitted.
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