Case Law Details
Platino Classic Motors India Pvt Ltd Vs Deputy Commissioner of Central Tax And Central Excise (Kerala High Court)
Introduction: The Kerala High Court, in the case of Platino Classic Motors India Pvt Ltd vs Deputy Commissioner of Central Tax and Central Excise, addressed an appeal challenging a judgment related to unpaid service tax and central excise dues. The appellant, a private limited company, faced insolvency resolution proceedings, leading to a moratorium. The dispute arose when the respondents claimed dues after the moratorium period, prompting the appellant to contest the proceedings.
Detailed Analysis: The National Company Law Tribunal initiated corporate insolvency resolution proceedings against the appellant on 08.03.2021, imposing a moratorium under Section 14 of the Insolvency and Bankruptcy Code. Subsequently, a liquidation order was passed on 30.09.2022, initiating a fresh moratorium. During this period, the 1st and 2nd respondents claimed unpaid service tax and central excise dues based on orders Exts.P7 and P8. Additionally, the 3rd respondent made a claim under the GST Act with orders Exts.P9 and P10. The appellant contested, arguing that the proceedings could not conclude without involving the Official Liquidator.
The learned Single Judge, however, rejected the contention, stating that the insolvency resolution process’s admission and moratorium did not bar tax recovery proceedings. The Writ Appeal ensued, with the court hearing the appellant’s counsel and the Senior Standing Counsel for the respondents.
The court, after considering the submissions, directed respondents 1, 2, and 3 to pass fresh orders, replacing Exts.P7 to P10, after hearing the Official Liquidator within two months. The court also set aside the previous orders/notices and instructed the respondents to issue a fresh notice to the Official Liquidator within three weeks.
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