Kerala HC Quashes Service Tax Demand Citing IBC Resolution Plan Approval

Heera Construction Company Pvt. Ltd Vs Union of India (Kerala High Court)

Kerala High Court has quashed a show cause notice and subsequent order for service tax dues issued against Heera Construction Company Pvt. Ltd., ruling that such proceedings cannot be initiated against a company once its resolution plan has been approved under Section 31 of the Insolvency and Bankruptcy Code (IBC), 2016. The decision, delivered on July 25, 2025, emphasizes the “clean slate” principle established by the Supreme Court, which extinguishes all claims not part of an approved resolution

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