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TMI Blog2025 (4) TMI 1231X X X X Extracts X X X X X X X X Extracts X X X X ..... 30.08.2024 ("Impugned Order") issued under Section 73 of the Central Goods and Services Tax Act, 2017 ("CGST Act") and relating to Financial Year 2019-2020. 3. The primary ground for challenging the Impugned Order is the approval of a Resolution Plan under the statutory regime constructed in terms of the Insolvency and Bankruptcy Code, 2016 ("IBC") and the statutory injunct which would operate in respect of any claim which may pertain to a period prior to the Resolution Plan being approved. 4. It is in the aforesaid context, the learned counsel appearing for the Petitioner, contended that the challenge is liable to be accepted bearing in mind the decisions handed down by this Court in the case of AMNS Khopoli Limited (Formerly known as U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mittee of Creditors ("CoC") came to be constituted and whereafter a public notice came to be issued inviting Expressions of Interest ("EOI") from parties. On 08.03.2019, JSW Steel Coated Products Limited submitted a Resolution Plan for consideration of the CoC. Pursuant to deliberations which ensued before the CoC, a revised Resolution Plan came to be tendered on 06.04.2019. The aforesaid Resolution Plan was again revised and submitted for consideration of the CoC on 24.04.2019 and which ultimately came to be approved on 28.06.2019. The plan was thereafter transmitted for affirmation and approval to the NCLT on 10.07.2019. 8. The NCLT, by its order of 26.10.2020, ultimately came to approve the said Resolution Plan. The factum of approval o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... written submissions w.r.t. claims standing extinguished by virtue of the approval of the Resolution Plan were not considered while passing the Impugned Order merely due to sheer oversight and that the office of the Respondents have issued necessary Instructions to the jurisdictional authority directing them not to pursue any recovery proceedings in the matter. 13. We have heard the learned counsel for the parties and also perused the papers and proceedings in the above Writ Petition. At the outset, it would be necessary to extract the provisions of Section 31 (1) of the IBC, since it makes the terms of resolution of corporate debtors binding on the world at large. They are extracted below: "31. (1) If the Adjudicating Authority is satisf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The following extracts from Ghanshyam Mishra (supra) are noteworthy: "102. In the result, we answer the questions framed by us as under: 102.1. That once a resolution plan is duly approved by the adjudicating authority under sub-section (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the corporate debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the adjudicating authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder is essentially for the Financial Year 2019-20. Evidently, such proceedings pertain to the period prior to the approval of the Resolution Plan. The Resolution Plan came to be approved on 26.10.2020. The conduct of such proceedings which has resulted in the passing of the Impugned Order would be directly in conflict with the law declared in Ghanshyam Mishra (supra). Consequently, nothing in the Impugned Proceedings can legitimately survive. 16. We may mention that a co-ordinate bench of this Court in Alok Industries Ltd. v. Assistant Commissioner of Income-tax [2024] 161 taxmann.com 285 (Bombay) held in favour of the Assessee quashing various proceedings for Income Tax re-assessment initiated against a corporate debtor that had undergo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent No. 2 and all subsequent communications issued by Respondent No. 2 pursuant to the aforementioned impugned notices are bad in law since assessment and inquiry under the Act is sought to be initiated in gross violation of provisions of the Code in as much as it relates to a period prior to the Effective Date." 17. The aforesaid position in law squarely applies to the facts of the instant case and necessitates quashing the Impugned Order. Evidently and admittedly, the Impugned Order relates to the period prior to the approval of the Resolution Plan of the Petitioner-Assessee, and therefore the claim made in the Impugned Order stands extinguished. This is why the Supreme Court has clearly ruled that initiation and continuation of proce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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