In a case of disallowance of availment of cenvat creditof service tax, the Chennai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) directed to follow the National Company Law Tribunal, Mumbai (NCLT) Order.
M/s. Ruchi Soya Industries Limited, the appellant challenged the order passed by an original authority who disallowed the availment of cenvat credit of service tax to the tune of Rs.88,84,632/- for the period February 2011 and March 2011 and ordered for recovery of the same along with interest and imposed equal penalty Under the provisions of Cenvat Credit Rules, 2004 read with Section 11AC of Central Excise Act, 1944.
It was submittedthat Corporate Insolvency Resolution Process (CIRP) was initiated in respect of the appellant under the provisions of the Insolvency and Bankruptcy Code, 2016 by order of the NCLT dt. 08.12.2017 read with an order dated 15.12.2017.
The CIRP was completed on 06.09.2019 whereby the NCLT vide its order dt. 24.07.2019 read with order dt. 04.09.2019 has approved the Resolution Plan submitted by the Consortium of Patanjali Ayurved Limited, Divya Yog Mandir Trust, Patanjali Parivahan Pvt. Ltd. and Patanjali Gram Udhyog Nyas. Committee.
It was submitted that in view of the order passed by the NCLT, the Resolution Plan may be taken into consideration and the appeal may be disposed of accordingly.
It was evident that all claims or liabilities etc owed to any Government Authority by the Corporate Debtor, about any period before the Effective Date or on the acquisition of control of the Corporate Debtor by the Resolution Applicant through the SPV proposed to stand extinguished upon the receipt of the said amount towards statutory dues under the approval of the resolution plan by theNCLT.
In light of the order passed by the NCLT, the Coram comprising of Ms Sulekha Beevi C.S., Member (Judicial) and Shri M. Ajit Kumar, Member (Technical) disposed of the appeal filed by the appellant.
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