The State Tax Officer, Gujarat, appealed against an NCLT order dissolving the Corporate Debtor (M/s. Shree Raghuvanshi Fibres Pvt. Ltd.) post-liquidation. The appellant contended its VAT and CST dues, backed by a statutory first charge under Sec.48 of the GVAT Act, should be treated as secured debt under IBC Sec.53, not operational statutory dues. The liquidator and Bank of Baroda (financial creditor) argued against this, citing non-registration of charge, non-disclosure in claim forms, and the Paschimanchal case.
The appellant is the Sales Tax Authority of the State of Gujarat.
The Corporate Debtor, M/s. Shree Raghuvanshi Fibres Pvt. Ltd., fell in arrears of VAT under the Gujarat Value Added Tax Act, 2003 (GVAT Act) and CST for four assessment years from 2014-2015 to 2017-2018.
According to the appellant, a statutory first charge is created in terms of Sec.48 of the GVAT Act.
On 05.09.2019, the appellant initiated recovery steps and addressed a communication to the jurisdictional Mamlatdar seeking attachment and for recording of charge over the immovable properties of the Corporate Debtor, but Mamlatdar's records do not disclose any such charge or attachment.
On 18.02.2020, the Corporate Debtor was admitted to Corporate Insolvency Resolution Process (CIRP).
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Corporate Debtor fell…
Corporate Debtor fell…
The State Tax Officer, Gujarat, appealed against an NCLT order dissolving the Corporate Debtor (M/s. Shree Raghuvanshi Fibres Pvt. Ltd.) post-liquidation. The appellant contended its VAT and CST dues, backed by a statutory first charge under Sec.48 of the GVAT Act, should be treated as secured debt under IBC Sec.53, not operational statutory dues. The liquidator and Bank of Baroda (financial creditor) argued against this, citing non-registration of charge, non-disclosure in claim forms, and the Paschimanchal case.
The appellant is the Sales Tax Authority of the State of Gujarat.
The Corporate Debtor, M/s. Shree Raghuvanshi Fibres Pvt. Ltd., fell in arrears of VAT under the Gujarat Value Added Tax Act, 2003 (GVAT Act) and CST for four assessment years from 2014-2015 to 2017-2018.
According to the appellant, a statutory first charge is created in terms of Sec.48 of the GVAT Act.
On 05.09.2019, the appellant initiated recovery steps and addressed a communication to the jurisdictional Mamlatdar seeking attachment and for recording of charge over the immovable properties of the Corporate Debtor, but Mamlatdar's records do not disclose any such charge or attachment.
On 18.02.2020, the Corporate Debtor was admitted to Corporate Insolvency Resolution Process (CIRP).
…Corporate Debtor fell…
Corporate Debtor fell…