Umesh Garg, Liquidator Indo International Tobacco Ltd. Vs Commissioner, Central GST & Central Excise (NCLAT Delhi)
National Company Law Appellate Tribunal (NCLAT) in Delhi has disposed of an appeal filed by Umesh Garg, the liquidator of a corporate debtor, regarding confiscated goods held by the GST Department. The NCLAT’s order, issued on July 31, 2025, directs the liquidator to submit a detailed representation to the GST authorities for the removal or disposal of seized stock from the corporate debtor’s rented premises.
The appeal contested an order dated April 3, 2025, from the Adjudicating Authority (National Company Law Tribunal – NCLT), which had permitted the liquidator to approach the GST Department for consideration. The liquidator’s initial application sought directions for the GST Department, Gautam Budh Nagar, to lift confiscated cigarettes and smoking mixtures from the corporate debtor’s rented warehouse in Greater Noida.
The liquidator argued that since the goods were confiscated by the GST Department, they were no longer owned by the corporate debtor. However, the corporate debtor continued to incur rental and storage costs for these seized items. The application requested either that the GST Department remove the stock within two weeks or allow the liquidator to dispose of/destroy the seized goods, stating they were “not fit for human consumption and does not carry any realizable value,” without further consequence on the corporate debtor.
