Service Tax Demand Abates After Liquidation, CESTAT Rules on Unclaimed Dues

Veesons Energy Systems Pvt. Ltd Vs Commissioner of GST and Central Excise (CESTAT Chennai) In a significant ruling concerning the interplay between the Insolvency and Bankruptcy Code (IBC) and indirect tax proceedings, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai, has dismissed a service tax demand against Veesons Energy Systems Pvt. Ltd. The Tribunal concluded that the demand, which was not formally claimed by the department during the corporate debtor’s liquidation process, could not be pursued, citing the principles laid down by the Supreme Court and the T...