Statutory Dues including Income Tax, VAT etc. are Operational Debts under IBC

Pr. Director General of Income Tax (Admn. & TPS) Vs M/s. Synergies Dooray Automotive Ltd. & Ors. (NCLAT) Conclusion – All statutory dues including ‘Income Tax’, ‘Value Added Tax’ etc. come within the meaning of ‘Operational Debt’ under the Insolvency and Bankruptcy Code 2016. Facts – According to appellant, the ‘Sales Tax’ and ‘Value Added Tax’ do not come within the meaning of ‘Operational Debt’ and thereby, ‘Sales Tax Department, State of Maharashtra’ cannot be treated to be an ‘Operational Creditor’. Held – ‘Operational Debt’ in normal cours...