2024 (11) TMI 1208 - HC - GST

Seeking to quash the Impugned Ex-Parte Order passed under Section 73(9) of the CGST/ UPGST Act, 2017 as well as the Impugned Summary of the Order - extension of period of limitation for determination of tax under Section 73(10) of the CGST/ UPGST Act, 2017 without having any exigency provided under Explanation to Section 168A of CGST/UPGST Act, 2017 - HELD THAT - Petitioner placed reliance upon the judgements of the Supreme Court in Ghanshyam Mishra and Sons (P.) Ltd. v. Edelweiss Asset Reconstruction Co. Ltd. 2021 (4) TMI 613 - SUPREME COURT ; Pr. CIT v. Monnet Ispat Energy Ltd. 2018 (8) TMI 1775 - SC ORDER ; judgement of Bombay High Court in Murli Industries Limited v. Astt. CIT 2021 (12) TMI 1182 - BOMBAY HIGH COURT ; and the order of Delhi High Court in ARENA SUPERSTRUCTURES PRIVATE LIMITED VERSUS ASSISTANT COMMISSIONER OF INCOME TAX ANR. 2024 (7) TMI 1558 - DELHI HIGH COURT to buttress his argument that once the resolution plan has been sanctioned by the National Company Law Tribunal, other dues that are not part of said plan would extinguish. Furthermore, new liability cannot be created by the tax authorities for prior periods on a company, that is the 'successful resolution applicant'. In light of the above judgements and the ratio laid down by the Supreme Court in Ghanshyam Mishra and Sons (P.) Ltd., the order impugned dated April 30, 2024 is stayed during the pendency of this writ petition. List this matter on January 16, 2024.

Summary

The writ petition seeks to quash an ex-parte order and demand notice under CGST/UPGST Act, 2017 for the financial year 2018-2019. The petitioner relies on Supreme Court judgments to argue against the recovery of tax, interest, and penalty imposed. The High Court stays the impugned order pending the writ petition. Counter affidavit to be filed within six weeks, with a hearing scheduled for January 16, 2024.