GST Demand Quashed Post NCLT Plan Approval | HC

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

• Vaibhav Goel v. Deputy Commissioner of Income-tax [2025] 172 taxmann.com 601 (SC) (Para 7) followed

List of Cases Referred to

• Ghanashyam Mishra & Sons (P.) Ltd. v. Edelweiss Asset Reconstruction Co. Ltd. [2021] 126 taxmann.com 132/166 SCL 237 (SC) (para 4)
• N.S. Papers Ltd. v. Union of India [Writ Tax No. 408 of 2021, dated 11-12-2024] (para 4)
• Vaibhav Goyal v. Dy. CIT [Civil Appeal No. 49 of 2022, dated 20-3-2025] (para 4)
• Committee of Creditors of Essar Steel India Ltd. v. Satish Kumar Gupta [2019] 111 taxmann.com 234 (SC) (para 4).