TMI Blog2023 (5) TMI 767X X X X Extracts X X X X X X X X Extracts X X X X ..... the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior the date on which the Adjudicating Authority grants its approval under Section 31 could be continued. CBIC has vide Instruction No.1083/04/2022-CX9 dated 23.05.2022 has laid down the guidelines in the form of Standard Operating Procedure (SOP) for handling the NCLT cases by the department, and reiterated the legal position that as operational creditors, GST and Customs authorities are required to submit their claims against the corporate debtors when the corporate insolvency and resolution process has been initiated. Once the Resolution plan is approved by NCLT, no demands can be raised on the Resolution Applicant. However fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of the case are that in a show cause notice proceedings initiated under Section 73(1A) of the said Act for recovery of service tax on code share charges and inter airline service charges, the Commissioner of Service Tax-V, Mumbai had adjudged the case confirming the demands for Rs. 20,28,56,543/- along with applicable interest, besides imposition of penalty under Section 78 of the said Act vide the impugned order. During the pendency of these appeals, the appellant-assessee faced financial difficulties and an application was filed by one of the financial creditors under Section 7 of the Insolvency and Bankruptcy Code, 2016 for recovering debts owned by the appellant-assessee company. The National Company Law Tribunal, Hyderabad Bench (N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter is no more res integra, as the Hon ble Supreme Court in Civil Appeal No. 8129 of 2019, in the case of Ghanashyam Mishra and Sons Pvt. Ltd. Vs. Edelweiss Asset Reconstruction Company Ltd. Ors. vide judgement dated 13.04.2021, had decided the settled position of law, as under:- 2. The short but important questions, that arise for consideration in this batch of matters, are as under:- (i) As to whether any creditor including the Central Government, State Government or any local authority is bound by the Resolution plan once it is approved by an adjudicating authority under sub-section (1) of Section 31 of the Insolvency and Bankruptcy Code, 2016 (herein after referred to as I B Code )? (ii) As to whether the amendment to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment, 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 the date on which the Adjudicating Authority grants its approval under Section 31 could be continued. 5. We also find that CBIC has vide Instruction No.1083/04/2022-CX9 dated 23.05.2022 has laid down the guidelines in the form of Standard Operating Procedure (SOP) for handling the NCLT cases by the department, and reiterated the legal position that as operational creditors, GST and Customs authorities are required to submit their claims against the corporate debtors when the corporate insolvency and resolution process has been initiated. Once the Resolution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ims not being admitted and extinguished once a resolution plan is approved. It is also observed that the authorities then litigate on the rejection of each claims, despite the settled position that no claims can be raised once the plan is approved and no demands can be raised on the Resolution Applicant who has taken over the company through such a resolution plan. 6. Appellant-assessee has also claimed that the refund of pre-deposit to be paid to them at the time of filing the captioned appeal. In this regard, we find that the matter has already been decided by the Hon ble Supreme Court in the case of Ruchi Soya [2022 (380) ELT 8 (SC)]. The relevant paras of the judgement is extracted as follows: 14. Admittedly, the claim in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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