# In the matter of Department of State Tax, Through the Dy. Commissioner of State Tax vs. Zicom Saas Pvt. Ltd. & Anr.

> NCLAT judgment dated 2023-02-07. Citation: TCN-2023-NCLAT-00731. The Department of State Tax filed an appeal challenging an order dated December 16, 2021,…

- **Court:** NCLAT
- **Order date:** 7 Feb 2023
- **Citation:** TCN-2023-NCLAT-00731
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/department-of-state-tax-through-the-dy-commissioner-of-state-tax-vs-zicom-saas-p-64e47810

## Summary

### Background

The Department of State Tax filed an appeal challenging an order dated December 16, 2021, passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Court-III). The Adjudicating Authority had approved a Resolution Plan submitted by the Resolution Professional. The appellant's claim was for Rs. 43,72,97,479, out of which the Resolution Professional accepted Rs. 36,68,12,729. However, the appellant was allotted only 1% of the admitted claim in the Resolution Plan.

## Facts

The Department of State Tax filed an appeal against the approval of a Resolution Plan by the Adjudicating Authority (NCLT, Mumbai). The appellant, Department of State Tax, had a claim of Rs. 43,72,97,479, but only Rs. 36,68,12,729 was admitted by the Resolution Professional. The Resolution Plan allotted only 1% of the admitted claim to the appellant. The appellant argued that its claim should have been treated as a secured charge, relying on the Supreme Court's judgment in "State Tax Officer Vs. Rainbow Papers Limited". The respondent contended that a review petition was filed against the Supreme Court's judgment and that the judgment was distinguishable. The court compared Section 48 of the Gujarat VAT Act with Section 37 of the Maharashtra VAT Act, noting a

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## Issues and analysis

### Issue 1: Whether the Appellant's claim was required to be treated as secured charge in view of the Judgement …

**Ratio:** The principle established in "State Tax Officer Vs. Rainbow Papers Limited" is

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**Reasoning:** The court distinguished the present case from "Rainbow Papers Limited" by

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**Interpretation:** The interpretation hinges on the specific wording of the state VAT Act. If the

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**Application:** In this case, Section 37 of the Maharashtra VAT Act makes the tax dues subject

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Department of…
- **Respondents:** Zicom Saas Pvt.…

## Timeline

- **2021-12-16 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Court-III)…
- **2023-02-02 — Notice Issued by…**: The Hon'ble Supreme Court issued notice on Review Petition (CIVIL) Diary No. 32268 of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(2) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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