Treatment of Tax department as Secured Creditor under IBC as per Section 26 of Haryana Value Added Tax, 2003 – Amar Nath Liquidator for Karan Processors Pvt. Ltd. (In Liquidation) Vs. Excise & Taxation Commissioner – NCLAT New Delhi

Hon’ble NCLAT holds that:
(i) There is no doubt that at the time when the Liquidator rejected the claims, there was a timeline and the window was open till 26.12.2020 whereas Form C was submitted on 01.03.2021 but the decision of the Hon’ble Supreme Court, which is a declaration of law, rendered on 06.09.2022 categorically says that the filing of dues within the prescribed period does not apply to the Respondent as in that case also there was a claim of the taxation department and it was held that as per Section 26 of Haryana Value Added Tax, 2003 the first charge on the dues under the said act, on the property of the defaulter, is of the department.
(ii) But the important aspect of the matter has not been looked into by the Tribunal while issuing the directions. The Tribunal has not taken into consideration the practical difficulties to be faced by the Liquidator for the purpose of recovering the amount from 29 stakeholders after the entire proceedings were over.

Treatment of Tax department as Secured Creditor under IBC as per Section 26 of Haryana Value Added Tax, 2003 – Amar Nath Liquidator for Karan Processors Pvt. Ltd. (In Liquidation) Vs. Excise & Taxation Commissioner – NCLAT New Delhi Read Post »