TMI Blog2023 (5) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... 017-18 and 2018-19, which are much prior to the date of finalization of the Resolution Plan, i.e. 12.10.2019 - The Deputy Commissioner, State GST Department exercises quasi judicial functions while acting under the provisions of the GST Act and thus, it is expected from such officer to act judiciously, consider the reply of the party, apply mind to the facts and law and pass a reasoned order. However, a bare perusal of the impugned orders dated 22.04.2020 is sufficient to satisfy us that the officer acted in gross defiance of the settled legal position as expounded by Hon'ble Supreme Court in the case of Committee of Creditors of Essar Steel India Ltd. [ 2019 (11) TMI 731 - SUPREME COURT ] and this Court in the case of Ultra Tech Na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it petitions. Show cause notices dated 07.02.2020 and consequential orders dated 22.04.2020 passed by the respondent Deputy Commissioner, State Tax, Anti-Evasion, Bhilwara, whereby the petitioner has been called upon to explain as to why the ITC claimed by it for the Financial Years 2017-18 and 2018-19 may not be reversed are assailed in these writ petitions. Replies to the show cause notices were filed by the authorized representative of the petitioner, wherein it was pertinently mentioned that the petitioner company became sick. Accordingly, Corporate Insolvency Resolution Process (CIRP) was initiated under the Insolvency and Bankruptcy Code, 2016. The National Company Law Tribunal (NCLT), Kolkata Bench, Kolkata passed a final or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of India Ors. [MANU/RH/0283/2020] and urged that the said judgment was cited in the reply filed by the petitioner, but in gross defiance thereof, the Deputy Commissioner, proceeded to pass the order dated 22.04.2020 imposing upon the petitioner, consolidated demands by way of tax, interest and penalty to the tune of Rs.3,55,90,450/- for the Financial Year 2017-18 and Rs.10,21,35,117/- for the Financial Year 2018-19. He urged that all claims of the Corporate Creditors and Statutory Creditors stood extinguished upon approval of the Resolution Plan by the NCLT. Despite that, the Deputy Commissioner, exercised powers in a sheerly perfunctory, arbitrary and laconic manner, while ignoring the detailed reply filed by the petitioner and issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Committee of Creditors of Essar Steel India Ltd. Through Authorised Signatory Vs. Satish Kumar Gupta Ors. [2019 (16) SCALE 319]. This court also examined similar controversy in the case of Ultra Tech Nathdwara Cement Ltd. (supra) and held that any demands made by the Statutory Creditor, i.e. Commercial Taxes Department, for the period prior to the effective date stand extinguished with the approval of the Resolution Plan by the NCLT. Pursuant to receiving the notices dated 17.02.2020, the petitioner, through its representative submitted detailed reply, wherein the fact regarding passing of the approved Resolution Plan by the NCLT is categorically mentioned. The judgment in the case of Ultra Tech Nathdwara Cement Ltd. (su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ach of the authority exercising quasi judicial powers reflects sheer incompetency and pedantic approach and adds to the evergrowing dockets of cases in the courts. The reply of the petitioner was incorporated in the order dated 22.04.2020 by using the procedure of cut-copy-paste but without making the slightest consideration of the averments made therein, the demand orders were issued in a sheerly perfunctory manner. We have no doubt that the proceedings were required to be dropped by the authority in light of the reply. While arguing the matter on behalf of the respondents, Shri Sunil Bhandari, Advocate, candidly conceded that the impugned demand notices do not stand to scrutiny. However, his submission was that the orders should be qua ..... X X X X Extracts X X X X X X X X Extracts X X X X
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