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TMI Blog2025 (1) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... solution Plan has been made binding on the Corporate Debtors - McNally Bharat Engineering Company Ltd., its employees, members, creditors, guarantors including the Central Government, any State Government or any local authority and other stakeholders involved in the Resolution Plan, to whom a debt in respect of payment of dues arising under any law for the time being in force, is owed. Section 238 of the IBC provides that the Code will prevail in case of inconsistency between two laws. This court also examined similar controversy in the case of Ultra Tech Nathdwara Cement Ltd. [ 2020 (4) TMI 269 - RAJASTHAN HIGH COURT ] and held that any demands made by the Statutory Creditor, i.e. Commercial Taxes Department, for the period prior to the ef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of Rs. 10,06,266/-, 43,073/- and 1,75,55,035/- on account of non-payment of the entry tax for the goods purchased by the petitioner from outside the State of Rajasthan. In furtherance of the aforesaid assessment orders, notice for payment of demand were also issued. 4. The respondent-Department, in order to recover the aforesaid due amount from the petitioner-company, issued a notice/communication dated 17.07.2019 to the Manager SBI, Agoocha, District Bhilwara (respondent No. 2), invoking special mode of recovery under Section 50 of RVAT, 2003 read with Section 9 CST Act whereby it had directed the respondent No. 2 to recover the outstanding amount of Rs. 1,86,04,374/- from the Bank account of the petitioner-company. 5. The petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed and other stakeholders involved in the Resolution Plan. 9. It was emphasized by the learned counsel for the petitioner that approval of the Resolution Plan by the NCLT with effect from 19.12.2023 waived and/or extinguished and/or settled all tax dues of whatever nature of Central, State and local authorities pertaining to the period prior to the effective date. It was contended that the assessment orders pertains to the years 2014-2015, 2015-2016 and 2016-2017 and for the recovery of the amount in pursuance of the same, communication was issued to the Bank in the year 2019, all liabilities of the petitioner which became a sick unit and went for CIRP stood extinguished on account of the acceptance of the Resolution Plan w.e.f. 19.12.2023 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the NCLT, Kolkata vide order dated 19.12.2023. It is also an admitted position that the demands raised by effect of the impugned assessment orders and impugned communication/notice dated 17.07.2019 which pertain to the Assessment Years 2014-2015, 2015-2016 and 2016-2017, which are much earlier to the date of approval of the Resolution Plan by the NCLT. 13. Learned Additional Advocate General has referred the judgment of the Hon ble Supreme Court rendered in the case of State Tax Officer Vs. Rainbow Papers Ltd. (Civil Appeal No.1661/2020) : (2023) 9 SCC 545 and the judgment rendered in the case of Paschimanchal Vidyut Vitran Nigam Ltd. Vs. Raman Ispat Private Ltd. Ors. (Civil Appeal No.7976/2019) : (2023) 10 SCC 60. 14. Learned Additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n order for approval of resolution plan under this sub-section, satisfy that the resolution plan has provisions for its effective implementation. (2) Where the adjudicating authority is satisfied that the resolution plan does not confirm to the requirements referred to in sub-section (1), it may, by an order, reject the resolution plan. (3) After the order of approval under sub-section (1), (a) the moratorium order passed by the adjudicating authority under Section 14 shall cease to have effect; and (b) the resolution professional shall forward all records relating to the conduct of the corporate insolvency resolution process and the resolution plan to the Board to be recorded on its database. (4) The resolution applicant shall, pursuant to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ech Nathdwara Cement Ltd. (supra) and held that any demands made by the Statutory Creditor, i.e. Commercial Taxes Department, for the period prior to the effective date stand extinguished with the approval of the Resolution Plan by the NCLT. 17. Law is well-settled that with the finalization of insolvency resolution plan and the approval thereof by the NCLT, all dues of creditors, Corporate, Statutory and others stand extinguished and no demand can be raised for the period prior to the specified date. 18. The assessment orders pertain to the years 2014-2015, 2015-2016 and 2016-2017 and for the recovery of the amount in pursuance of the same, communication was issued to the Bank in the year 2019, which are much prior to the date of finalizat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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