Karthik Alloys Limited Vs Union of India (Bombay High Court)
Bombay High Court held that demand in respect of the duty drawbacks post approval of resolution plan is liable to be waived off in terms of section 31A of the Insolvency and Bankruptcy Code, 2016. Accordingly, writ stand allowed.
Facts- Post CIRP of the petitioner, the Assistant Commissioner of Customs, Goa (Respondent No.2) issued an order dated 21.10.2024 directing the petitioner to pay an amount of Rs. 10,01,724/- as duty drawbacks u/s. 75(1) of the Customs Act, 1962 along with interest u/s. 75A (2) read with rule 18(2) of the Customs and Central Excise Drawback Rules, 2017.
Being aggrieved by the order dated 21.10.2024 passed by respondent no. 2 demanding a duty drawback of Rs. 10,01,722/- along with interest, the present petition is filed.
Conclusion- Hon’ble Supreme Court in Committee of Creditors of Essar Steel India Limited through authorized signatory Vs, Satish Kumar Gupta & others 2020 (8) SCC 531, was examining the various aspects pertaining to Section 31(1) of the IBC wherein it has been stipulated that once the resolution plan is approved, all claims stand extinguished, and the Corporate Debtor is handed over to the Resolution applicant as a “fresh slate”.
