Patanjali Foods Limited Vs Commissioner of Customs (Karnataka High Court)
Karnataka High Court held that claims which are not a part of resolution plan stands extinguished, accordingly, no person will be entitled to initiate or continue any proceedings in respect to a claim which is not part of the resolution plan.
Facts- The assessee – Ruchi Soya Industries Ltd., was carrying on business o, import of Crude Palm Oil of Edible grade in bulk. The said Ruchi Soya imported 8499.980 MTs., first Grade bulk oil which arrived at the New Mangalore Port on 22.2.2011 and 28 bills of entry dated 21.2.2011 were filed for clearance claiming duty exemption as per notification dated 1.3.2002.
It was the contention of the revenue that the imported Crude Palm Oil was not of edible grade and that Ruchi soya was not entitled to duty exemption as claimed and hence, a show cause notice dated 17.2.2012 was issued and demand of customs duty amounting to `19,40,00,646/- was confirmed. Being aggrieved, the assessee preferred an appeal before the CESTAT.
During the pendency of the appeal, an order u/s. 7 of the Insolvency and bankruptcy Code, 2016 was passed by NCLT, whereunder it was ordered commencement of Corporate Insolvency Resolution Process against Ruchi Soya and an Interim Resolution Professional was appointed to carry out the functions as per the IBC. NCLT accepted the modified resolution plan and approved the same, consequent to which change in control of the assessee has taken place and the name of Ruchi Soya was changed to Patanjali Foods Limited as is forthcoming from the Certificate dated 24.6.2022 issued by the office of the Registrar of Companies, Mumbai.
