Garg Inox Ltd. & Anr. Vs Union of India & Ors. (Delhi High Court)
Summary: The Delhi High Court considered a writ petition filed by Garg Inox Ltd & Anr. challenging various demand and payment notices issued in respect of liabilities allegedly arising prior to the initiation of the Corporate Insolvency Resolution Process (CIRP) on 25.07.2017. The petitioners sought quashing of demands relating to income tax, provident fund, customs, GST and local authority dues pertaining to periods preceding the CIRP commencement date.
Corporate Insolvency Resolution Process had been initiated against Petitioner No. 1 under the Insolvency and Bankruptcy Code, 2016 (IBC) by an order dated 25.07.2017 passed by the National Company Law Tribunal, New Delhi. Petitioner No. 2 was the Successful Resolution Applicant. The resolution plan submitted by Petitioner No. 2 was approved by the NCLT on 04.12.2018 under Section 31 of the IBC.
The petitioners specifically challenged demand notices issued by the Income Tax Department, including a notice dated 29.05.2020 concerning financial year 2009-10 and an assessment order dated 31.03.2016 concerning assessment year 2013-14. The first demand related to Rs.6,83,244/-, comprising demand of Rs.3,38,280/- and interest of Rs.3,44,964/-, with adjustment against TDS refund. The petitioners also referred to other departmental demands arising from periods preceding the CIRP.
