After approval of Resolution Plan under IBC, demands raised under GST assessment stands extinguished – Patna Highway Projects Ltd. Vs. The State of Bihar and Ors. – Patna High Court
Hon’ble Patna High Court held that the tax dues for the respective assessment years were not included in the resolution plan. The State has not challenged the resolution plan by way of an Appeal or a proceeding before this Court. The resolution plan has been approved on 10.05.2022 and before that the State has not approached the R.P. or the NCLT. In the above circumstances, we have to follow the consistent declaration of law made by the Hon’ble Supreme Court in Ghanashyam Mishra & Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Company Ltd. & Ors. (2021) ibclaw.in 54 SC, CoC of Essar Steel India Ltd. v. Satish Kumar Gupta & Ors. (2019) ibclaw.in 07 SC and Ruchi Soya Industries Ltd. Vs. Union of India & Ors.(2022) ibclaw.in 11 SC and the demands raised by the assessment orders, of tax due for the years 2020-21 and 2022-23 stands extinguished; subject only to the contingency of a liquidation proceeding if the resolution plan fails.
