Sical Logistics Limited & Anr. Vs State Tax Officer (Gujarat High Court)
The Gujarat High Court heard a writ petition filed under Articles 226 and 227 of the Constitution of India challenging an Order-in-Original dated 21 December 2023 passed under Section 73 of the Gujarat Goods and Services Tax Act, 2017 for Financial Year 2017–18, and the subsequent appellate order dated 25 April 2025. The petitioner sought quashing of both orders on the ground that the GST demand related to a period prior to the approval of a resolution plan under the Insolvency and Bankruptcy Code, 2016 (IBC).
The petitioner company is engaged in warehousing and logistics services across India. Corporate Insolvency Resolution Process (CIRP) was initiated against it by an order of the National Company Law Tribunal (NCLT), Chennai Bench dated 10 March 2021. A resolution plan submitted by Pristine Malwa Logistics Park Private Limited was approved by the NCLT on 8 December 2022 under Section 31 of the IBC.
In its approval order, the NCLT specifically dealt with the waiver and extinguishment of liabilities. It granted reliefs sought under the resolution plan whereby all actual or potential dues and liabilities under indirect tax laws, including GST, for any period prior to the effective date of the resolution plan were declared extinguished. The NCLT held that such dues, whether admitted or not, known or unknown, crystallised or uncrystallised, stood settled and extinguished, and that all notices, assessments, and proceedings relating to periods prior to the effective date stood terminated. The resolution plan was held to be binding on the corporate debtor and all stakeholders, and the moratorium under Section 14 of the IBC ceased upon approval.
