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TMI Blog2024 (5) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... 4)15/18/CE/PKL/09/7108-7110 dated 21.07.2009 i) I disallow the Cenvat Credit amounting to Rs.90,72,593/- (Service Tax of Rs.88,37,180/- + Edu. Cess of Rs.1,76,720/- +SHE Cess of Rs.58,693/-) under the provisions of Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11 A of the Central Excise Act, 1944 and order recovery of the said amount along with interest under Section 11AB of the Act ibid. ii) I impose penalty of Rs.90,72,593/- (Rupees ninety Lakhs seventy two thousand and five hundred ninety three only) under Rule 15 of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. However, benefit of reduced penalty @25% under Section 11 AC ibid would be available to the noticee subject to fulfillme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this appeal, the appellant faced financial difficulties and an application was filed by one of the financial creditors under section 7 of the Insolvency and Bankruptcy Code, 2016 for recovering debts due from the appellant's company and Mumbai Bench of the NCLT initiated Corporate Insolvency Resolution Process (CIRP) against the appellant's company vide its order dated 17.01.2020 under Section 7 of the Insolvency and Bankruptcy Code, 2016. Accordingly, a Resolution Plan was floated by the Resolution Professional for approval of the committee of creditors. The Resolution Plan submitted before NCLT, was approved by NCLT vide its order dated 31.03.2023 and the Resolution Plan became effective from this date i.e. 31.03.2023. 6. After consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Resolution plan once it is approved by an adjudicating authority under sub- section (1) of Section 31 of the Insolvency and Bankruptcy Code, 2016 (herein after referred to as „I&B Code‟)? (ii) As to whether the amendment to Section 31 by Section 7 of Act 26 of 2019 is clarificatory/declaratory or substantive in nature? (iii) As to whether after approval of resolution plan by the Adjudicating Authority a creditor including the Central Government, State Government or any local authority is entitled to initiate any proceedings for recovery of any of the dues from the Corporate Debtor, which are not a part of the Resolution Plan approved by the adjudicating authority? ..... CONCLUSION 95. In the result, we answer th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that as operational creditors, GST and Customs authorities are required to submit their claims against the corporate debtors when the corporate insolvency and resolution process has been initiated. Once the Resolution plan is approved by NCLT, no demands can be raised on the Resolution Applicant. The relevant paragraph of said instructions is extracted below : "C.B.I. & C. Circular No. 1083/04/2022-CX.9 F. No. 296/286/2021-CX. 9 Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes & Customs, New Delhi Dated 23.05.2022 To All Principal Chief Commissioner(s)/ Chief Commissioner(s) of Customs/ Customs (Preventive)/ Customs & CGST, All Principal Chief Commissioner(s)/ Chief Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided by the Hon'ble Supreme Court in the case of Ruchi Soya [2022 (380) ELT 8 (SC)]. The relevant paras of the judgement is extracted as follows: "14. Admittedly, the claim in respect of the demand which is the subject matter of the present proceedings was not lodged by the respondent No. 2 after public announcements were issued under Sections 13 and 15 of the IBC. As such, on the date on which the Resolution Plan was approved by the Learned NCLT, all claims stood frozen, and no claim, which is not a part of the Resolution Plan, would survive. 15. In that view of the matter, the appeals deserve to be allowed only on this ground. It is held that the claim of the respondent, which is not part of the Resolution Plan, does not survive. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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