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TMI Blog2023 (4) TMI 1076X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 78(1) and Rs.10,000/- under Section 77 of the Finance Act, 1994. The said demand was confirmed on the ground of alleged mis-match of freight charges reflected in ST-3 vis-à-vis the books of account of the Appellant and on the grounds of non-payment of Service Tax on commissions paid by the Appellant for external commercial borrowings. 2. The Ld. Advocate appearing on behalf of the Appellant submits that the Appellant has undergone the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 read with the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. He further submits that such process of insolvency initiated in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assistant Commissioner, Central GST & Central Excise, Asansol-I Division made a claim for Rs. 9,88,70,621/- vide a letter dated 02.02.2022 before the Resolution Professional of the Appellant company. That the subject matter of the present appeal was also a part of such claim. 5. For ease of reference, a timeline of the Appellant's insolvency proceedings in CIRP vis-à-vis the present appeal is tabulated hereunder: Sl. No. Event FY, 2011-12 to 2012-13 1. Period involved in the present case before the Hon'ble CESTAT. FY, 2011-12 to 2012-13 2. SCN issued 09.07.2010 3. OIO issued 15.12.2007 4, OIA issued 22.04.2019 5. Appeal preferred 22.12.2020 6. CIRP proceedings initiated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Hon'ble NCLT approving the resolution plan and the Hon'ble CESTAT has become functus officio and the appeal pending before the Hon'ble CESTAT stood abated. 9. It was also held that in view of the Rule 22 of the CESTAT Procedure Rules, 1982 the appeal stood abated with effect from the date of approval of resolution plan by the Hon'ble NCLT. 10. Further, the Appellant most humbly submits that the order of the Hon'ble NCLT is binding on all stakeholders, which includes the Central Government. Therefore, no liability towards any operational creditors other than as approved in the resolution plan shall exist and any other liability shall be immediately, irrevocably and unconditionally stand fully and finally discharged and settled, with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is initiated and public announcement inviting claims is made by the insolvency professional. 2. A timeline of 90 days from the insolvency commencement date is available for filing of claims. However, it has been observed that there is an inordinate delay in filing of claims by Customs and GST authorities. This leads to their claims not being admitted and extinguished once a resolution plan is approved. It is also observed that the authorities then litigate on the rejection of each claims, despite the settled position that no claims can be raised once the plan is approved and no demands can be raised on the Resolution Application who has taken over the company through such a resolution plan." 15. We find that the Hon'ble Supreme Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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