The Bangalore bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the appeal can be abated as per rule 22 of the CESTAT procedure rules with effect from the date of approval of the resolution plan by NCLT.
Tiffins Barytes, the appellant assessee was engaged in the business of winning iron ore and red oxide minerals. The company exports its minerals to foreign buyers and also sells to domestic buyers. For transportation of iron ore and red oxide minerals from the mines, they availed the services of the Goods Transport Agency.
The assessee appealed against the order passed by the adjudicating authority for confirming the demand amounting to Rs. 41,79,510/- and Rs. 44,59,411/- from 01.04.2006 to 31.03.2007.
N. Anand, the counsel for the assessee contended that Rule 22 should be applicable the moment the successor interest with sufficient rights is appointed by NCLT to make an application for continuation of the proceeding.
H. Jayathirtha, the counsel for the department relied on the decisions made by the lower authorities and contended that the assessee was liable for the demand raised by the department.
The Bench observed that in the case of Murli Industries Ltd, the court held that the appeal abated once the invoice registration portal was appointed and/or the Resolution plan was approved. Consequently, the appeal abated as per Rule 22 of CESTAT (Procedure) Rules.
The two-member bench comprising D M Misra (Judicial) and Pullela Nageshwara Rao (Technical) abated the appeal filed by the assessee.
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