Excise Demands Extinguished by NCLT Order: Telangana HC Disposes CESTAT Appeal [Read Order]
As the resolution plan extinguished all indirect tax dues and related proceedings prior to the completion date, the High Court held that the appeal stood covered by this development and disposed of the matter accordingly.
![Excise Demands Extinguished by NCLT Order: Telangana HC Disposes CESTAT Appeal [Read Order]](https://images.taxscan.in/h-upload/2025/07/09/2061989-nclt-order-taxscan.webp "Excise Demands Extinguished by NCLT Order: Telangana HC Disposes CESTAT Appeal [Read Order]")
The High Court of Telangana, disposed of the Customs Excise and Service Tax Appellate Tribunal ( CESTAT ) appeal filed by petitioner noting that the excise demands raised in the proceedings stood extinguished under the resolution plan approved by the National Company Law Tribunal (NCLT). Sirpur Paper Mills Limited,petitioner -assessee, had filed an appeal under Section 35-G of...
The High Court of Telangana, disposed of the Customs Excise and Service Tax Appellate Tribunal ( CESTAT ) appeal filed by petitioner noting that the excise demands raised in the proceedings stood extinguished under the resolution plan approved by the National Company Law Tribunal (NCLT).
Sirpur Paper Mills Limited,petitioner -assessee, had filed an appeal under Section 35-G of the Central Excise Act, 1944, challenging the order passed by CESTAT, South Zonal Bench, Bangalore, on 18.01.2010.The tribunal had upheld the Commissioner (Appeals) order, which had earlier dismissed the petitioner’s appeal.
When the matter was taken up for hearing, counsel for the petitioner-assessee submitted that the impugned order had already been stayed on 26.02.2010 and the stay remained in force.
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It was also noted that the petitioner had earlier challenged the show cause notice dated 03.03.2006 issued by the Central Excise Department by filing W.P. No. 23436 of 2006. This writ petition was disposed of on 23.01.2024 after the petitioner-company was admitted into insolvency before the NCLT under C.P.(IB) No.52/9/HDB/2017.
The NCLT, in its final order dated 04.03.2020, approved the resolution plan and held that all indirect tax dues and related proceedings prior to the completion date stood extinguished. It further clarified that no proceedings under indirect tax laws, including those kept in abeyance, would survive post-approval of the resolution plan.
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In light of the NCLT’s order, the petitioner informed the High Court that the show cause notice no longer had any effect and expressed unwillingness to pursue the writ petition. Accordingly, the writ petition was disposed of.
Justice P.Sam Koshy and Justice Narsing Rao Nandikonda taking note of these developments, including the NCLT’s approval of the resolution plan, held that the present appeal also stood covered and disposed of the same.
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