Case Law Details
Jet Airways (India) Limited Vs Commissioner of Service Tax (CESTAT Mumbai)
CESTAT Mumbai held that from the date of approval of the resolution plan by the NCLT, the appeal filed by the applicant has abated and CESTAT has become functus officio in the matters relating to this appeal.
Facts- In a show cause notice proceedings initiated u/s. 73(1A) for recovery of service tax on code share charges and inter airline service charges, the Commissioner of Service Tax-V, Mumbai had adjudged the case confirming the demands for Rs.20,28,56,543/- along with applicable interest, besides imposition of penalty u/s. 78 of the said Act vide the impugned order.
During the pendency of these appeals, the appellant-assessee faced financial difficulties and an application was filed by one of the financial creditors u/s. 7 of the Insolvency and Bankruptcy Code, 2016 for recovering debts owned by the appellant-assessee company. NCLT issued an order dated 20.06.2019 for initiating CIRP in regard to the appellant-assessee company under Section 13 of IBC. Accordingly, a Resolution Plan was floated by the Resolution Professional for approval of the Committee of Creditors. The Resolution Plan submitted before NCLT was approved by NCLT vide order dated 22.06.2021 and the Resolution Plan is effective from this date, i.e., the NCLT Approval Date.
Revenue was one of the operational creditors and on the basis of the Resolution Plan, the liquidation value due to the operational creditors including taxes is presumed to be NIL.
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