Transafe Services Ltd Vs Superintendent of Central GST and Central Excise (Madras High Court)
Summary: The Madras High Court disposed of W.P. No. 14266 of 2026 at the admission stage, concerning a consolidated Order-in-Original dated 26.12.2025 under Section 74 of the CGST/TNGST Act, 2017 for the financial years 2018-19 and 2019-20. The petitioner, M/s. Transafe Services Ltd, had been taken over by M/s. Om Logistics Ltd through the Corporate Insolvency Resolution Process and challenged the tax order passed by the Superintendent of Central GST and Central Excise.
The impugned order confirmed the proposal contained in Show Cause Notice No.20/2024 dated 02.12.2022 for the tax period April 2018 to March 2020. The petitioner had submitted its reply on 20.02.2025. The material insolvency fact recorded by the Court was that Corporate Insolvency Resolution Proceedings had been initiated against the petitioner before the NCLT, Kolkata on 21.11.2019 and that a moratorium was in force from that date. Subsequently, the resolution plan filed by the resolution applicant was sanctioned and the petitioner company was taken over by the management of the resolution applicant, M/s. Om Logistics Ltd.
The Court referred to the Supreme Court decisions in Committee of Creditors of Essar Steel India Limited Vs Satish Kumar Gupta and others and Ghanashyam Mishra and Sons Private Limited Vs Edelweiss Asset Reconstruction Company Limited and Others. On the basis of the principle relied upon in those decisions, the Court observed that, prima facie, tax liability for the period prior to initiation of the corporate insolvency resolution proceedings could not be fastened on the petitioner.
