NCLT Resolution Plan and GST Dues – Allahabad HC in Kay Pan Fragrance Case

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  • Last Updated on 8 September, 2025

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NCLT Resolution Plan and GST Dues

Case Details: Kay Pan Fragrance (P) Ltd vs. State of U.P. - [2025] 177 taxmann.com 816 (Allahabad)

Judiciary and Counsel Details

  • Shekhar B. Saraf & Praveen Kumar Giri, JJ.
  • Zafar Ahmad Khan for the Petitioner
  • Dhananjay Awasthi, CSC for the Respondent

Facts of the Case

The petitioner went into the Corporate Insolvency Resolution Process (CIRP), and a Resolution Professional was appointed on the same day. The creditors were asked to submit their claims before the Resolution Professional. Later, the Resolution Plan was approved by the National Company Law Tribunal (NCLT).The GST Department, however, passed an order for the impugned assessment year, demanding tax, interest and penalty. Aggrieved by the order, the petitioner filed a writ petition before the High Court of Allahabad.

High Court Held

The Court held that once the Resolution Plan had been approved by NCLT, the GST Department could not create further dues by passing orders. The resolution applicant could not be saddled with new claims once a resolution plan had been approved. Thus, the impugned Assessment Order was quashed.

List of Cases Reviewed

  • Vaibhav Goyal v. Dy. CIT [Civil Appeal No. 49 of 2022, dated 20-3-2025](para 7), followed

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