TaxTMI 
TaxTMI 
2022 (6) TMI 284
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....olvency proceedings were transferred from the NCLT, Kolkata to NCLAT under directions of Hon'ble the Supreme Court which invited claims from financial, statutory and operational creditors of the Corporate Debtor. Resolution plans were also invited from parties interested in revival of sick undertakings. The respondent Commercial Taxes Department submitted its claim before the NCLAT. The resolution plan submitted by M/s.UltraTech Cement Limited was approved by the NCLAT on 14.11.2018 and it was declared to be the Successful Resolution Applicant. Hon'ble the Supreme Court approved the decision of NCLAT vide order dated 19.11.2018. In terms of Section 31 of the Insolvency and Bankruptcy Code, 2013, the resolution plan, approved by the NCLAT, is binding on all stakeholders including the Operational Creditors, Financial Creditors and the Statutory Creditors, including the respondent Corporate Taxes Department and all claims and dues towards the pending demands, except those approved by the NCLAT, of these creditors stand discharged on the date of transfer of the Corporate Debtor unit to the Successful Resolution Applicant which, in the present case, is 20.11.2018. As a consequence, all....
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.... was raised against the Corporate Debtor. The demand notice was assailed by filing appeal under Section 82 of the RVAT Act, 2003 and thereafter before the learned Tax Board, Ajmer under Section 83 of the RVAT Act, 2003 which were dismissed by the learned Tax Board vide order dated 28.12.2017. The Corporate Debtor deposited the following amounts "under protest" against the demand raised by the Commercial Taxes Department and towards statutory predeposits: S. No. Amount Deposited On Deposited By 1. Rs.2,01,400 09.10.2013 DD No.200568 2. Rs.14,91,053 29.10.2013 DD No.423119 3. Rs.1,35,472 25.08.2014 DD No.968042 Total Rs.18,27,925 (3) D.B. Sales Tax Ref./rev. No. 13/2018 An order dated 13.01.2014 (rectified on 23.01.2014) was passed by the Commercial Tax Officer, Anti Evasion, Rajasthan, Circle-II whereby, the Input Tax Credit allowed by the assessing authority for the period from 01.04.2009 to 31.03.2010, was disallowed. Output Tax on High Speed Diesel purchased against full payment of VAT within the State, was imposed along with penalty and interest thereupon. In this manner, total demand of Rs.1,78,09,546/- was raised against t....
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....sailed by filing appeal under Section 82 of the RVAT Act, 2003 and thereafter before the learned Tax Board, Ajmer under Section 83 of the RVAT Act, 2003 which were dismissed by the learned Tax Board vide order dated 28.12.2017. The Corporate Debtor deposited the following amounts "under protest" against the demand raised by the Commercial Taxes Department and towards statutory predeposits: S.No. Amount Deposited On Deposited By 1. Rs.2,36,800 (Pre Deposit for filing 1st Appeal) 09.10.2013 DD No.200567 2. Rs.6,06,963 29.10.2013 DD No.423118 3. Rs.89,790 25.08.2014 DD No.968041 4. Rs.1,620 23.06.2015 Challan No. GRN: 0006733787 Total Rs.9,35,173 The controversy regarding fate of all the outstanding dues of the Corporate Debtor M/s. Binani Cement Limited has been settled by Division Bench of this Court vide judgment dated 07.04.2020 rendered in D.B. Civil Writ Petition No.9480/2019 (Ultra Tech Nathdwara Cement Ltd. vs. Union of India & Ors.) observing as below: "Learned counsel for the petitioner pointed out that the Commercial Taxes Department of Govt. of Rajasthan whose claim for a sum of Rs.479.73 crores was verified just....
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....ollowing pertinent prayers made in the SLP which stands rejected: "(a) admit and allow the appeal filed by the appellant against the impugned Final Judgment dated 14.11.2018 passed by the Hon'ble National Company Law Appellate Tribunal, New Delhi in Company Appeal (AT) (Insolvency) Nos. 82, 123, 188, 216 & 234 of 2018; and/or (b) pass any other or further orders which Your Lordships may deem to be fit and proper in the interest of justice. ...... Considered in light of the ratio of the above judgment and the stance of Hon'ble the Finance Minister before the upper house of the Parliament, it is clear that the financial creditors have to be given a precedence in the ratio of payments when the resolution plan is being finalized. It is the financial creditors who are given right to vote in the COC whereas, the operational creditors viz. Commercial Taxes Department of the Central Government or the State Government as the case may be, have no right of audience. The purpose of the statute is very clear that it intends to revive the dying industry by providing an opportunity to a resolution applicant to take over the same and begin the operation on a clean slate. For that purpo....
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....ommissioner, Commercial Tax Department & Anr.) wherein it was held: "Drawing analogy from the conclusions drawn by this court in the judgment dated 07.04.2020, any demand made by the State Commercial Taxes Department in excess of that approved by the NCLAT would have to be struck off and if any amount has already been received over and above what has been approved under the Resolution Plan, the same would have to be refunded. The Commercial Taxes Department issued the order dated 12.08.2021, whereby it has been resolved as below :- Apparently, as per this order, all demands of the Department against the sick unit as they existed prior to date of transfer of the original unit to the petitioner, i.e. 25.07.2017, were disposed of in accordance with the Resolution Plan. The pre-deposits, of which refund is sought by the petitioner, had been made by way of mandatory statutory obligation while filing appeals before the Tax Board as part of the tax liability of M/s. Binani Cement. However, as all demands raised by the Department for the date prior to the taking over of the sick unit under the Resolution Plan have been disposed of, the appeals pending before the Tax Board became ....
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....f resolution plan by the Adjudicating Authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan; (ii) 2019 amendment to Section 31 of the I&B Code is clarificatory and declaratory in nature and therefore will be effective from the date on which I&B Code has come into effect; (iii) Consequently all the dues including the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the Adjudicating Authority grants its approval under Section 31 could be continued. 132. The appeal therefore is allowed. The impugned judgment and order dated 6.7.2020 passed by the Allahabad High Court is quashed and set aside. We hold and declare, that the respondents are not entitled to recover any claims or claim any debts owed to them from the Corporate Debtor accruing prior to the transfer date. Needless to state, that the consequences thereof shall....