# 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-00143. The Deputy Commissioner State Taxes & Excise, District Sirmour, Himachal Pradesh, filed an…

- **Court:** NCLAT
- **Order date:** 20 Oct 2022
- **Citation:** TCN-2022-NCLAT-00143
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/deputy-commissioner-state-taxes-excise-vs-sh-sanjay-gupta-company-appeal-14f01a33

## Summary

### Background

The Deputy Commissioner State Taxes & Excise, District 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 in CP No. (IB)-473(PB)/2018. The order 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 Insolvency and Bankruptcy Code (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 non-appearance of the dealer. On 30.08.2018, another notice was issued for finalization of tax assessment. The Adjudicating Authority admitted the company petition on 11.12.2018, initiating CIRP under Section 7 of the IBC. A public announcement was made on 14.12.2018. The assessment proceedings for the years 2011-12 to 2017-18 were finalized on 25.04.2019, and a tax demand notice of Rs. 12,27,77,844/- was issued. 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

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in vacating the lien marked on the assets of the …

**Ratio:** The Hon'ble Supreme Court in “State Tax Officer (1) Vs. Rainbow Papers Limited bearing

…

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

…

**Interpretation:** The Supreme Court has clarified that statutory dues owed to the government,

…

**Application:** The NCLAT applied the Supreme Court's ruling to the present case, concluding

…

## Parties

- **Judges:** Anant Bijay…; Shreesha…
- **Appellants:** Deputy Commissione…
- **Respondents:** Case Cold Roll…; Sh. Sanjay…

## Timeline

- **2011-01-01 — Assessment proceedings…**: Assessment proceedings for the years 2011-12 to 2015-16 remained pending due to…
- **2018-08-30 — Notice for finalization…**: Another notice was issued for finalization of tax assessment for the period 2011-12 to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/deputy-commissioner-state-taxes-excise-vs-sh-sanjay-gupta-company-appeal-14f01a33