GST
TRT-2025-
High court of Allahabad
Date:-07-08-25
In:-
Issue Favourable to Tax Payer ?:-
Order attached: 07 Aug 2025
Parties: M/S K.V. Aromatics Pvt. Ltd. V. State of U.P. & Ors.
Facts -
- The petitioner company entered Corporate Insolvency Resolution Process (CIRP) on 15 March 2022. The GST Department was informed and also filed its claim before the Resolution Professional. The NCLT approved the resolution plan on 12 March 2025. .
- Despite this, the Deputy Commissioner issued an assessment order on 29 December 2023 under Section 73 of the UPGST/CGST Act for FY 2017–18, raising demands. The petitioner argued that all claims not part of the approved resolution plan stood extinguished.
Issue -
- Whether the GST Department can raise fresh demands for pre-resolution period tax dues after the approval of a resolution plan by the NCLT under the IBC?
Order -
- The division bench of the Hon’ble High court held that once a resolution plan is approved, no new claims - statutory or otherwise can be raised for prior periods. Such demands would defeat the IBC’s objective of giving a “clean slate” to the successful resolution applicant.
- Therefore, the principle is crystal clear that once resolution Plan has been approved by the NCLT, all other creditors are barred from raising their claims subsequently, as the same would disrupt the entire resolution process.
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