# In the matter of Deputy Commissioner State Taxes & Excise Vs. Sh. Sanjay Gupta Company Appeal (AT) (Insolvency) No. 336 of 2021

> NCLAT judgment dated 2022-10-20. Citation: TCN-2022-NCLAT-00142. The Deputy Commissioner of State Taxes & Excise, Sirmour, Himachal Pradesh, filed an appeal…

- **Court:** NCLAT
- **Order date:** 20 Oct 2022
- **Citation:** TCN-2022-NCLAT-00142
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/deputy-commissioner-state-taxes-excise-vs-sh-sanjay-gupta-company-appeal-0ee12629

## Summary

### Background

The Deputy Commissioner of State Taxes & Excise, Sirmour, Himachal Pradesh, filed an appeal against an order dated 01.10.2020 passed by the Adjudicating Authority (National Company Law Tribunal, Principal Bench, New Delhi) in IA No. 1428. The Adjudicating Authority had allowed an application filed by the Liquidator of Case Cold Roll Forming Limited, vacating a lien marked on the Corporate Debtor's assets. The lien was related to unpaid tax, interest, and penalty amounting to Rs. 12,27,77,844/-. The Adjudicating Authority vacated the lien because it was subsequent to the admission of the company petition and would not have primacy over the overriding effect covered under Section 238 of the IBC.

## Facts

Case Cold Roll Forming Ltd. (Corporate Debtor) was a dealer registered under the Himachal Pradesh Value Added Tax, 2005 and the Central Sales Tax, 1956. Assessment proceedings for the years 2011-12 to 2015-16 remained pending due to the non-appearance of the dealer. The Adjudicating Authority admitted the company petition on 11.12.2018 filed by Oriental Bank of Commerce against the Corporate Debtor for initiating CIRP under Section 7 of the IBC. The Appellant issued a tax demand notice of Rs. 12,27,77,844/- to the Corporate Debtor on 25.04.2019. The tax demand was declared as arrear of Land revenue on 01.05.2019, and a lien was marked on the properties on 14.05.2019. The Committee of Creditors decided to resolve for Liquidation of the Corporate Debtor, and the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order vacating the lien marked on the Corporate Debtor's …

**Ratio:** The Supreme Court in State Tax Officer (1) Vs. Rainbow Papers Limited held that statutory

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**Reasoning:** The NCLAT found that the Adjudicating Authority did not consider the ratio of the Supreme

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**Interpretation:** The Supreme Court's judgment in Rainbow Papers clarified that statutory dues,

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**Application:** The NCLAT applied the ratio of the Rainbow Papers case to the present case,

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## Parties

- **Judges:** Anant Bijay…; Shreesha…; +1 more
- **Appellants:** Deputy Commissione…
- **Respondents:** Case Cold Roll…; Sanjay…

## Timeline

- **2011-01-01 — Assessment Pro…**: Assessment proceedings for the years 2011-12 to 2015-16 remained pending due to the…
- **2018-12-11 — Admission of Company…**: The Adjudicating Authority admitted the company petition filed by Oriental Bank of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 36 — Liquidation estate](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-36)

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