2024 (5) TMI 1217 - AT - Central Excise

Abatement of appeal - CIRP - Continuance of Proceedings After Liquidation Order - Rule 22 of Custom Excise Service Tax Appellate Tribunal Procedure Rules 1982 - HELD THAT - Undisputedly in terms of the order dated 20.09.2018 National Company Law Tribunal has directed for winding up of the appellant company and have appointed official liquidator in the matter. No application as per Rule 22 has been made by the official liquidator appointed by the NCLT in the matter for continuance of this appeal before tribunal even after expiry of more than five years from the date of NCLT order. Thus the appeals should abate in terms of the above referred rule. Appeal abates in terms of Rule 22 of Custom Excise Service Tax Appellate Tribunal Procedure Rules 1982.

Summary

Issues Involved:
1. Confirmation of demand of duty and interest.
2. Imposition of penalty.
3. Commencement of Corporate Insolvency Resolution Process (CIRP).
4. Application of moratorium u/s 14 of IBC, 2016.
5. Liquidation order by NCLT.
6. Abatement of appeal u/s 22 of Custom Excise Service Tax Appellate Tribunal Procedure Rules, 1982.

Summary:

1. Confirmation of demand of duty and interest:
The appeal challenges the order dated 28.09.2011 by the Commissioner (Appeal) Customs, Central Excise, and Service Tax, Noida, which upheld the confirmation of demand of duty of Rs 35,183/- along with interest of Rs 3833/-, but set aside the imposition of penalty on the appellant.

2. Imposition of penalty:
The Commissioner (Appeal) set aside the imposition of penalty on the appellant, which was part of the original order being appealed.

3. Commencement of Corporate Insolvency Resolution Process (CIRP):
The Deputy Registrar informed the Tribunal about the commencement of CIRP for the appellant company, Moser Baer India Ltd. (MBIL), as per the letter dated 06.01.2018 from the Resolution Professional, citing the order dated 14.11.2017 by the Hon'ble NCLT.

4. Application of moratorium u/s 14 of IBC, 2016:
The Resolution Professional advised that any recovery action against MBIL would violate Section 14 of IBC, 2016, and could lead to penal action u/s 74 (2) of IBC, 2016.

5. Liquidation order by NCLT:
The NCLT ordered the liquidation of MBIL on 20.09.2018 due to the absence of a resolution plan, with a unanimous decision by the Committee of Creditors (COC). The liquidation was to be conducted as per Chapter III of Part II of the Insolvency and Bankruptcy Code, 2016.

6. Abatement of appeal u/s 22 of Custom Excise Service Tax Appellate Tribunal Procedure Rules, 1982:
Rule 22 stipulates that an appeal shall abate if the appellant company is wound up unless an application for continuance is made by the liquidator. No such application was made within the stipulated period, leading to the appeal abating in terms of Rule 22.

Conclusion:
The appeal abates due to the winding up of the appellant company and the absence of an application for continuance by the liquidator, as pronounced in open court on 05 April 2024.