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Customs Authorities can invoke Bank Guarantee/Fixed Deposit, made against Zero Import Duty, during moratorium period in force under Section 14 of IBC – Mr. Vijay Kumar Garg, Liquidator of Lance Vidarbha Thermal Power Ltd. Vs. Deputy Commissioner of Customs, Division-I, Nagpur – NCLAT Chennai

NCLAT held that:
(i) In the present case, invocation of BG is not about recovery of any claim by the customs authorities, but is about revocation of surety provided by the Corporate Debtor to the customs authorities in the form of FDRs and BG.
(ii) ABG Shipyard vs. Central Board of Indirect Taxes and Customs (2022) ibclaw.in 103 SC is distinguished on the basis that in the present case, the customs authorities are not recovering any amount on the basis of assessed customs/import duty, but the issue in the appeal is about invocation of the BG and FDRs.
(iii) In the light of the judgment in the matter of V. Ramakrishnan & Anr. (supra) and of in the matter of Bharat Aluminium Co. Ltd. vs. M/s. J.P. Engineers Pvt. Ltd. & Anr.(supra), it is clear that section 14(3)(b) allows for invocation of BGs.

Customs Authorities can invoke Bank Guarantee/Fixed Deposit, made against Zero Import Duty, during moratorium period in force under Section 14 of IBC – Mr. Vijay Kumar Garg, Liquidator of Lance Vidarbha Thermal Power Ltd. Vs. Deputy Commissioner of Customs, Division-I, Nagpur – NCLAT Chennai Read Post »

Maximum period for CIRP is 330 days but in exceptional cases the extension can be granted even beyond 330 days – Neel Metal Products Ltd. Vs. CA Nirav Tarkas & Anr. – NCLAT New Delhi

The Adjudicating Authority in the order has observed that in the 15th meeting of the CoC held on 17.05.2022, CoC in its commercial wisdom decided and resolved to call for fresh bids and after deliberation resolved for seeking extension of 60 days. The said decision to invite fresh bids was taken with 100% voting shares of the CoC. The CoC in its commercial wisdom has taken decision to call for fresh bids for which purpose 60 days’ extension has been granted. We are of the view that in exercise of our appellate jurisdiction, no grounds have been made out to interfere with the decision taken by the Adjudicating Authority granting 60 days. It is well settled that maximum period for CIRP is 330 days but in exceptional cases the extension can be granted even beyond 330 days. Present is a case where revised plans have been invited in commercial wisdom of CoC. Hence, we do not find any error in the order to entertain this Appeal.

Maximum period for CIRP is 330 days but in exceptional cases the extension can be granted even beyond 330 days – Neel Metal Products Ltd. Vs. CA Nirav Tarkas & Anr. – NCLAT New Delhi Read Post »

While sanctioning a scheme of arrangement the right of Tax Authorities remains intact to initiate appropriate proceedings regarding recovery of any tax – Ad2Pro Global Creative Solutions Pvt. Ltd. Vs. Regional Director, (SER), Ministry of Corporate Affairs- NCLAT New Delhi

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While sanctioning a scheme of arrangement the right of Tax Authorities remains intact to initiate appropriate proceedings regarding recovery of any tax – Ad2Pro Global Creative Solutions Pvt. Ltd. Vs. Regional Director, (SER), Ministry of Corporate Affairs- NCLAT New Delhi Read Post »

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