# In the matter of Spacevision Impex Private Limited Company Petition No. IB-697-ND-2018

> NCLT judgment dated 2019-05-08. Citation: TCN-2019-NCLT-03410. The State Trading Corporation of India Limited (STC) filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 8 May 2019
- **Citation:** TCN-2019-NCLT-03410
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/spacevision-impex-private-limited-company-petition-no-ib-697-nd-2018-d89d43ad

## Summary

### Background

The State Trading Corporation of India Limited (STC) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s Spacevision Impex Private Limited (SIPL), seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The application was based on the alleged default by SIPL in submitting 'C' Forms related to sales tax, leading to a demand, tax, and penalty under the Bombay Sales Tax Act and Central Sales Tax Act against STC. The application was filed due to the non-submission of C Forms by the corporate debtor, which prevented the applicant from claiming a concessional rate of tax, resulting in a higher tax liability.

## Facts

The State Trading Corporation of India Limited (STC) filed an application against M/s Spacevision Impex Private Limited (SIPL) under Section 9 of the Insolvency and Bankruptcy Code, 2016. STC claimed that SIPL defaulted on its obligation to submit 'C' Forms related to sales tax for the assessment year 2004-2005. According to STC, it had supplied various commodities to SIPL during 2004-2005 and raised invoices. Due to SIPL's failure to submit the 'C' Forms, STC could not claim a concessional rate of sales tax, leading to a demand of Rs. 388,53,25,846/- by the assessing authority in 2009. STC filed appeals and obtained a stay order, making a part payment of Rs 75,00,000/- on 07.07.2016. STC issued legal notices to SIPL for the tax liability, but received no response. STC

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## Issues and analysis

### Issue 1: Whether the 'Income Tax', 'Value Added Tax' or other statutory dues, such as municipal tax, excise …

**Ratio:** Operational Debt in normal course means a debt arising during the operation of the

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**Reasoning:** The court relied on the NCLAT's judgment in 'Pr. Director General of Income Tax (Admn.

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**Interpretation:** The term 'operational debt' is interpreted to include statutory dues that arise

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**Application:** In this case, the tax liability arose from the supply of goods as per the

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## Parties

- **Judges:** DEEPTI M…; Pradeep R.…
- **Appellants:** The State Trading…
- **Respondents:** M/s Spacevision…

## Timeline

- **2004-01-01 — Commodity…**: Applicant supplied various commodities to the corporate debtor during 2004-2005 and…
- **2005-01-19 — Memorandum of…**: Memorandum of Understanding (MoU) was executed between the applicant and the corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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