# In the matter of Commissioner of Customs & Excise vs. Ashika Commercial Pvt. Ltd. & Ors.

> NCLAT judgment dated 2022-12-16. Citation: TCN-2022-NCLAT-00021. The Commissioner of Customs & Excise – Jaipur-I, now known as Principal Commissioner Central…

- **Court:** NCLAT
- **Order date:** 16 Dec 2022
- **Citation:** TCN-2022-NCLAT-00021
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/commissioner-of-customs-excise-vs-ashika-commercial-pvt-ltd-ors-668c3c2f

## Summary

### Background

The Commissioner of Customs & Excise – Jaipur-I, now known as Principal Commissioner Central Goods & Service Tax, filed an appeal under Section 61 of the Insolvency and Bankruptcy Code 2016 against an order dated 12.08.2020 passed by the National Company Law Tribunal, Kolkata Bench. The appeal challenges the Adjudicating Authority's order and the non-provisioning for outstanding statutory dues of the Corporate Debtor (Ashika Commercial Pvt. Ltd.) amounting to Rs. 2,88,53,538/- plus interest in the Resolution Plan. The Corporate Debtor had failed to pay excise duty on manufactured goods for which Cenvat Credit had been availed but was later rejected by the buyer. The Appellant contends that the Adjudicating Authority initiated Corporate Insolvency Resolution

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## Facts

Ashika Commercial Pvt. Ltd. (Corporate Debtor) failed to pay excise duty on manufactured goods, leading to a demand of Rs. 2,88,53,538/-. The Commissioner of Customs & Excise – Jaipur-I (Appellant) initiated proceedings to recover the dues. The Adjudicating Authority initiated Corporate Insolvency Resolution Process (CIRP) on 22.08.2019. A Resolution Professional (RP) was appointed, and a Resolution Plan was approved by the Committee of Creditors (CoC) and the Adjudicating Authority. The Appellant did not file its claim during the CIRP process. The Appellant filed an appeal against the approval of the Resolution Plan, arguing that the statutory dues were not provided for. The Corporate Debtor had informed the Superintendent, CGST and Central Excise Range L1 about

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## Issues and analysis

### Issue 1: Whether the appeal filed by the Appellant is maintainable considering the Appellant's failure to …

**Ratio:** The law provides relief only for those who are diligent. The commercial wisdom rests with

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**Reasoning:** The Appellant failed to file its claim when invited by the RP, and the appeal was filed

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**Interpretation:** The court interpreted that creditors must be diligent in filing their claims

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**Application:** The Appellant's appeal was deemed not maintainable because it failed to file

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## Parties

- **Judges:** Rakesh…; Ashok Kumar…
- **Appellants:** Commissioner of…
- **Respondents:** Ashika Commercial…; M/s. Ashika…

## Timeline

- **2018-03-07 — Order in…**: Order in appeal dated 07.03.2018 was challenged by the CD before the Custom, Excise and…
- **2019-08-22 — CIRP Init…**: Adjudicating Authority initiated Corporate Insolvency Resolution Process (CIRP) vide its…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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