2024 (1) TMI 638 - AT - Service Tax

Refund of Service Tax - CIRP proceedings against the appellant - In the Resolution Plan, there has not been any provision made with regard to the pendency of this case. - tax paid on the services of Transport of Goods by Road for the period 16.11.1997 to 02.06.2008 - HELD THAT - The identical matter has been considered by two coordinate benches of the Tribunal in the case of M/s Jet Airways (India) Limited vs. Commissioner of Service Tax-IV, 2023 (5) TMI 767 - CESTAT MUMBAI and ICOMM TELE LTD. VERSUS COMMISSIONER OF CENTRAL TAX PUDUCHERRY - GST, ANDHRA PRADESH 2023 (10) TMI 1344 - CESTAT HYDERABAD . It is pertinent to refer the findings of the CESTAT, Mumbai Bench in the case of M/s Jet Airways Limited which was disposed of and it was ordered that the appeals stand abated once the Resolution Plan has been approved by NCLT and the CESTAT has become functus officio in the matters relating to this appeal. Once the Resolution Plan has been approved by the NCLT, thereafter, the present appeal stands abated as the CESTAT has become functus officio in the matter relating to the present appeal. Appeal disposed off.

Summary

Issues involved:
The appeal against the rejection of a refund of service tax, financial difficulties faced by the appellant-assessee, approval of a Resolution Plan in insolvency proceedings, impact of Resolution Plan on pending legal cases, and the abatement of the appeal before the Tribunal.

Refund of Service Tax Issue:
The appellant filed a refund of service tax for Transport of Goods by Road, which was rejected by the Assistant Commissioner and upheld by the Commissioner (Appeals), leading to the present appeal before the Tribunal.

Financial Difficulties and Insolvency Proceedings Issue:
During the appeal, a financial creditor initiated Corporate Insolvency Resolution Process (CIRP) against the appellant-assessee company, resulting in the approval of a Resolution Plan by the National Company Law Tribunal (NCLT) Mumbai Bench, which did not address the pending case.

Impact of Resolution Plan on Pending Legal Cases Issue:
The Tribunal considered the Resolution Plan's approval and cited previous cases to conclude that once a Resolution Plan is approved, all claims not part of the plan are extinguished, and no further proceedings can be initiated against the corporate debtor.

Abatement of Appeal Issue:
Following the legal precedent and the approval of the Resolution Plan, the Tribunal held that the appeal stands abated, as the Tribunal becomes functus officio in matters related to the appeal.

In summary, the Tribunal dismissed the appeal against the rejection of the service tax refund, citing the approval of the Resolution Plan in insolvency proceedings as extinguishing all claims not included in the plan. Consequently, the appeal was deemed abated, as the Tribunal had become functus officio in the matter.