Section 9(2) of CST Act doesn’t create statutory charge hence unpaid CST dues are unsecured debt

Advertisement State Tax Officer Vs Nitin Narang (NCLAT Delhi) NCLAT Delhi held that provisions of section 9(2) of the CST Act doesn’t create statutory charge on the assets of the Corporate Debtor. Thus, unpaid CST dues are unsecured debt. Accordingly, appeal is dismissed and order of Adjudicating Authority upheld. Facts- The Corporate Debtor– M/s Afcan Impex Pvt. Ltd. was admitted to Corporate Insolvency Resolution Process by order dated 17.02.2021 based on an application filed by Bank of Maharashtra u/s. 7 of the Insolvency and Bankruptcy Code, 2016. The RP issued public announcement ...