Orchid Chemicals & Pharmaceuticals Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)
The case of Orchid Chemicals & Pharmaceuticals Ltd. vs. Commissioner of GST & Central Excise was brought before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Chennai, challenging an Order-in-Original dated August 8, 2014. The appellant’s legal representative presented a copy of the Resolution Plan, which had been approved by the National Company Law Tribunal (NCLT) and subsequently upheld by the Supreme Court. The tribunal reviewed similar precedents, including a ruling by CESTAT Mumbai in the Jet Airways case and the Supreme Court’s decision in Ghanashyam Mishra and Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Co. Ltd., which held that tax appeals stand abated upon NCLT approval of a resolution plan under insolvency proceedings.
In alignment with these precedents and the Central Board of Indirect Taxes and Customs (CBIC) Instruction No. 1083/04/2022-CX9, CESTAT Chennai ruled that Orchid Chemicals’ appeal also stood abated. This decision reaffirmed the legal position that tax-related liabilities are extinguished upon the approval of an insolvency resolution plan. Consequently, the tribunal disposed of the appeal, following the established jurisprudence on the interplay between insolvency proceedings and pending tax disputes.
FULL TEXT OF THE CESTAT CHENNAI ORDER
