Neoteric Infomatique Ltd. Vs Commissioner of Customs (Air) (CESTAT Chennai)
Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai, dismissed the customs appeal filed by Neoteric Infomatique Ltd. following the approval of its resolution plan by the National Company Law Tribunal (NCLT). The tribunal ruled that once an adjudicating authority under the Insolvency and Bankruptcy Code (IBC) has approved a resolution plan, pending appeals related to the company’s liabilities stand abated. This decision aligns with the Supreme Court ruling in Ghanashyam Mishra and Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Co. Ltd. (Civil Appeal No. 8129 of 2019, judgment dated 13.04.2021).
The appellant had challenged an order by the Commissioner of Customs, Chennai. However, records indicated that the NCLT had approved the resolution plan and appointed an office liquidator. Under established legal principles, once the resolution plan is approved, all pending claims against the corporate debtor, including customs duty appeals, are extinguished unless explicitly provided for in the resolution plan. The tribunal cited multiple precedents, including Orchid Chemicals & Pharmaceuticals Ltd. vs. Commissioner of GST & Central Excise, Chennai (Final Order No. 40066 of 2024) and Jet Airways (India) Ltd. vs. Commissioner of Service Tax, Mumbai (Final Order No. A/85897/2023), which affirmed the abatement of such appeals.
