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2024 (2) TMI 1019 - AT - Service TaxRecovery of dues extinguished by resolution plan approved by NCLT - setting aside the demand on the basis of the NCLT proceedings - HELD THAT - This issue is no longer res-integra as it has been decided by this Tribunal in the Appellant s own case based on identical issue vide in ALOK INDUSTRIES LIMITED AND AJAY KURALKAR VERSUS C.C.E. S.T. -VAPI AND C.C.E. S.T. -SURAT-I 2022 (11) TMI 39 - CESTAT AHMEDABAD where it was held 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. In view of the above Tribunal s decision, the present appeal also deserves to be disposed of on the same line. Accordingly, the appeal is disposed of as infructuous.
Issues involved:
The issues involved in the judgment are the recoverability of demands based on a resolution plan approved by NCLT and the authority of the tribunal to decide on the recovery of dues in the absence of explicit provisions in the Customs and Central Excise Act. Issue 1: Recoverability of demands based on NCLT-approved resolution plan: The appellant appealed against an order dated 12.01.2015, stating that as per the resolution plan approved by NCLT, no dues exist against them. The appellant argued that the demands in the impugned order should be set aside based on the NCLT order. The Revenue, on the other hand, contended that there is no provision in the Central Excise Act, 1944 for setting aside demands based on NCLT proceedings. The Tribunal, after considering submissions from both sides, referred to its previous order dated 20.10.2022 in the appellant's own case. The Tribunal reproduced relevant paragraphs from the order, highlighting the terms of the resolution plan approved by NCLT. The plan indicated that the appellant is not liable to pay any dues as per the NCLT-approved resolution plan. However, the Tribunal stated that it is the department's responsibility to decide whether any dues are recoverable in light of the resolution plan approved by NCLT. The Tribunal concluded that it cannot finally decide on the recovery of adjudged dues as there is no provision in the Customs and Central Excise Act to give effect to NCLT proceedings. Issue 2: Authority of the tribunal to decide on recovery of dues without explicit provisions: The Tribunal noted that, based on the resolution plan approved by NCLT and a Supreme Court judgment, it prima facie appears that the adjudged dues cannot be recovered by the department. However, the Tribunal emphasized that it cannot make a final decision on the recoverability of the amount as there is no explicit provision under the Customs/Central Excise Act to give effect to NCLT proceedings. The Tribunal highlighted a letter from the Additional Commissioner (Legal) stating that all government dues prior to a specific date stand extinguished based on the NCLT's decision. In light of the above, the Tribunal considered the appeals infructuous and dismissed them as such. Both parties were given liberty to approach the Tribunal if an amicable resolution is not reached, to revive the appeals for a decision on merit if required. The appeals were disposed of as infructuous, and the Revenue was granted liberty to comply with a specific CBIC circular. This summary provides a detailed overview of the judgment, addressing the issues involved and the Tribunal's decision on each issue based on the arguments presented by the parties.
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