The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad Bench asked Central Board of Indirect Taxes and Customs (CBIC) to issue proper guideline as to what stand to be taken in case where Insolvency and Bankruptcy Code (IBC) proceedings is in progress before National Company Law Tribunal or National Company Law Appellate Tribunal (NCLT/NCLAT).
Gaurav Mathur and Abhishek Shah, Advocates appeared on behalf of the applicant, M/S. Ultratech Nathdwara Cement Limited. Gaurav Mathur submitted that as per the resolution plan approved by NCLT, no dues exist against the applicant therefore, the demand involved in the impugned order is not recoverable by the department consequently, the appeal becomes infructuous.
Dharmendra Kanjani, learned Superintendent (AR) appearing on behalf of the revenue raised the preliminary objection. He submitted that in the present case, the appellant M/s. Binani Cement Limited became insolvent therefore, the appeal needs to be abated. He further submitted that if at all, the present applicant wishes to continue the proceedings before this tribunal, the application should have been made within a period of 60 days from the date of declaration of the assessee as insolvent. Since in this case, the assessee has not filed application they cannot continue the proceeding before the Tribunal.
A Division Bench of the Tribunal consisting of Ramesh Nair, Judicial Member and Raju, Technical Member observed that “Firstly, there is no provision made in the Customs and Central Excise Act to give effect of NCLT proceedings. This tribunal being creature under the Customs Act, even though the Insolvency and Bankruptcy Code have over riding effect over all the other acts in absence of any explicit provision under the Customs/Central Excise Act, this tribunal cannot decide finally whether the adjudged amount can be recovered by the department or otherwise.”
“Therefore, we are of the view that the Central Board of Indirect Taxes & Customs may consider issuing guideline/procedure for dealing with the case before this tribunal wherein, against the assesse’s company IBC proceeding has been initiated” the Tribunal said.The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad Bench asked Central Board of Indirect Taxes and Customs (CBIC) to issue proper guideline as to what stand to be taken in case where Insolvency and Bankruptcy Code (IBC) proceedings is in progress before National Company Law Tribunal or National Company Law Appellate Tribunal (NCLT/NCLAT).
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