GST Demand Quashed Post NCLT Plan Approval | HC

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  • Last Updated on 19 May, 2025

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NCLT-approved resolution plan bars GST claims

Case Details: Arena Superstructures (P.) Ltd. v. Union of India - [2025] 174 taxmann.com 114 (Allahabad)

Judiciary and Counsel Details

  • Shekhar B. Saraf & Dr. Yogendra Kumar Srivastava, JJ.
  • Ami Tandon, Rahul Agarwal & Saumya Srivastava for the Petitioner.
  • Naveen Chand Gupta & Gopal Varma, Ld. Counsels for the Respondent.

Facts of the Case

The petitioner was a company that went into a Corporate Insolvency Resolution Process (CIRP). A resolution professional was appointed, and proceedings continued before the National Company Law Tribunal (NCLT). The creditors were asked to submit their claims, and notice was sent to the GST department by the RP. The resolution plan was approved. However, later on the impugned assessment order was passed. The petitioner contended that once the resolution plan had been approved by NCLT, the GST department could not create further dues by passing orders.

High Court Held

The Allahabad High Court held that once the resolution plan was approved by the NCLT, all other creditors were barred from raising claims subsequently. The Supreme Court has categorically held the same in Vaibhav Goel v. Deputy Commissioner of Income-tax [2025] 172 taxmann.com 601 (SC) that the same would disrupt the entire resolution process. Accordingly, the impugned assessment order was to be set aside.

List of Cases Reviewed

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied