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2023 (11) TMI 416 - AT - Central ExciseAbatement of appeal on appointment of IRP - continuation of proceedings under Rule 22 of CESTAT (Procedure) Rules, 1982 - HELD THAT - The Mumbai bench of this Tribunal in the case of M/s Alok Industries Ltd s case 2022 (10) TMI 801 - CESTAT MUMBAI analysed in detail Rule 22 of CESTAT (Procedure) Rules, 1982 and observed that Rule 22 should be applicable the moment the successor interest with sufficient rights is appointed by NCLT to make an application for continuation of the proceeding. The view consistently expressed by this Tribunal in a series of cases that the appeal abates once the IRP is appointed, is agreed upon - the appeal abates as per Rule 22 of CESTAT (Procedure) Rules, 1982.
Issues Involved: Whether the appellant is entitled to continue with the Appeal and claim relief after Order of NCLT approving the resolution plan has been passed.
Issue 1: Entitlement to Continue Appeal Post NCLT Order The appellant, engaged in manufacturing excisable goods, wrongly availed CENVAT Credit leading to a demand confirmed by the Commissioner. The Advocate withdrew representation citing initiation of Corporate Insolvency Resolution Process (CIRP) against the appellant. The main issue is whether the appellant can pursue the appeal post the NCLT's approval of the resolution plan. Issue 1 Details: The CESTAT (Procedure) Rules, 1982 Rule 22 states that proceedings abate upon death, insolvency, or winding up of a party unless continued by the successor-in-interest. The Mumbai bench previously held that Rule 22 applies once a successor with sufficient rights is appointed by NCLT. In this case, no application for continuation was made by the successor interest, leading to the abatement of the appeal post-NCLT's resolution plan approval. The Tribunal concurred with the abatement, stating that the appeal ceased upon NCLT's approval, making CESTAT functus officio in this matter. Significant Legal Phrases: - CENVAT Credit - Corporate Insolvency Resolution Process (CIRP) - Rule 22 of CESTAT (Procedure) Rules, 1982 - Successor-in-interest - Insolvency and Bankruptcy Code, 2016 - Resolution Plan - NCLT Approval - Abatement of Appeal - Functus Officio This summary provides a detailed overview of the issues involved in the legal judgment, highlighting the key legal aspects and decisions made by the Tribunal regarding the abatement of the appeal post-NCLT's resolution plan approval.
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