9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (12) TMI 1303 - AT - Service TaxAbatement of appeal - recovery of service tax with interest and penalty - HELD THAT - It is evident that the Respondent came under Liquidation, as such the proceedings pending in this appeal have become infructuous. Hon ble Apex Court in the case of GHANASHYAM MISHRA AND SONS PRIVATE LIMITED THROUGH THE AUTHORIZED SIGNATORY VERSUS EDELWEISS ASSET RECONSTRUCTION COMPANY LIMITED THROUGH THE DIRECTOR ORS. 2021 (4) TMI 613 - SUPREME COURT has held that ' once a resolution plan is duly approved by the Adjudicating Authority under subsection (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the Corporate Debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the Adjudicating Authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan.' As the NCLT, Chennai has ordered for Liquidation of the Respondent and as no application as per Rule 22 has been made by the Official Liquidator appointed by the NCLT for continuance of the appeal, the appeal should abate in terms of the above referred Rule. As such the appeal gets abated in terms of Rule 22 of the CESTAT (Procedure) Rules, 1982 and also gets dismissed as being infructuous.
Issues:
Service Tax liability of the respondent for the period from August 2010 to March 2015; Confirmation of Service Tax demand by the Adjudicating Authority; Appeal by the Department against the Order-in-Original; Liquidation of the respondent leading to the abatement of the appeal. Analysis: The case involved a Service Tax Appeal filed by the Department against the Order-in-Original passed by the Commissioner of GST and Central Excise, Tiruchirappalli. The respondent, a dental hospital, was alleged not to have paid Service Tax from August 2010 to March 2015 despite being registered under the category of 'Health Services'. The Department issued a Show Cause Notice proposing a substantial Service Tax demand, interest, and penalties. The Adjudicating Authority confirmed a Service Tax demand of Rs.6,43,911/- for the period from August 2010 to June 2012 and Rs.87,53,315/- for the period July 2012 to March 2015, along with interest and penalties under various sections of the Finance Act, 1994. The Department appealed the Order-in-Original before the Tribunal. However, it was revealed during the proceedings that the respondent, M/s. Vasan Dental Hospitals Private Limited, was under liquidation. Consequently, the Tribunal noted that the appeal had become infructuous due to the respondent's liquidation status. The Tribunal cited the decision of the Hon'ble Apex Court in a related matter, highlighting the impact of approval of a resolution plan on claims against a corporate debtor. The Tribunal also referred to Rule 22 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982, which specifies the abatement of proceedings in case of liquidation of a party to the appeal. Given the liquidation of the respondent and the absence of any application for continuance of the appeal by the Official Liquidator appointed by the NCLT, the Tribunal concluded that the appeal should abate as per Rule 22 of the CESTAT (Procedure) Rules, 1982. Consequently, the appeal was dismissed as infructuous. The Tribunal pronounced the order in open court, bringing the matter to a close.
|
