State Tax Officer Vs Besto Tradelink Limited (NCLAT Delhi)
Appeal Dismissed; GST Department Not a Secured Creditor Under Section 82 CGST Act in CIRP: NCLAT
Material Facts: The appeal was filed by the State Tax Officer, Rajkot, against the order dated 01.02.2024 of the National Company Law Tribunal, Ahmedabad Bench, approving the resolution plan of the Corporate Debtor submitted by the Successful Resolution Applicant. The Appellant had outstanding GST dues of ₹83,05,820 for earlier assessment years and contended that it should have been treated as a Secured Operational Creditor instead of an Operational Unsecured Creditor. Its claim had initially been admitted by the Interim Resolution Professional for ₹82,98,381 as an operational unsecured debt after rejecting its request for secured creditor status. The Resolution Professional subsequently reiterated the same position.
Procedural History
The Corporate Debtor entered CIRP on 31.10.2022 pursuant to an application under Section 9 of the Insolvency and Bankruptcy Code, 2016. Following public announcement, the Appellant submitted and later revised its claim. The Resolution Professional maintained that the Appellant could not be treated as a secured creditor under the CGST Act. The Adjudicating Authority approved the resolution plan on 01.02.2024, after which the State Tax Officer preferred the present appeal before the NCLAT.
