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2024 (6) TMI 1043 - AT - CustomsIssues involved: The issue involved in the present appeal is whether the appellants are entitled to continue with the Appeal and claim relief after the Order of NCLT approving the resolution plan has been passed. Analysis of the Judgment: Issue 1: Continuance of proceedings after NCLT Order: - The appeal was filed against an Order-in-Original by the Commissioner of Customs, Mangalore. - A petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 was filed by Standard Chartered Bank, leading to the approval of a Resolution Plan by the NCLT. - The appellants subsequently filed a miscellaneous application before the Tribunal, seeking relief based on the NCLT's orders. - The Revenue representative argued that once the Resolution Plan is approved by the NCLT, the appeals stand abated as per Rule 22 of the CESTAT (Procedure) Rules, 1982. - Various case laws were cited to support this argument. Issue 2: Application of Rule 22 of CESTAT (Procedure) Rules, 1982: - Rule 22 of the CESTAT (Procedure) Rules, 1982 deals with the continuance of proceedings after the death or adjudication of a party. - The Mumbai Bench of the Tribunal in a previous case analyzed Rule 22 and held that it becomes applicable when the successor interest with sufficient rights is appointed by the NCLT. - The Tribunal noted that the appeals abate as per Rule 22 from the date of the approval of the resolution plan by the NCLT. - The Gujarat High Court also held that in such circumstances, the appeal abates. Conclusion: - The Tribunal reiterated that once the Insolvency Resolution Professional is appointed and/or the Resolution plan is approved, the appeal abates as per Rule 22 of CESTAT (Procedure) Rules, 1982. - The Tribunal emphasized that it cannot exceed its statutory powers while deciding appeals against orders of statutory authorities. - Ultimately, the appeal in question abated in accordance with Rule 22, and the relief/order passed was as prescribed under the said Rule.
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