# In the matter of Karan Processors Private Limited IA No. 486-2021 In CP (IB) No.339-Chd-Hry-2019 > NCLT judgment dated 2023-01-24. Citation: TCN-2023-NCLT-04917. The Excise and Taxation Commissioner, Haryana Sales Tax Department filed an application (IA No.… - **Court:** NCLT - **Order date:** 24 Jan 2023 - **Citation:** TCN-2023-NCLT-04917 - **Category:** IBC - **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/karan-processors-private-limited-ia-no-486-2021-in-cp-ib-no339-chd-hry-2019-015a4fdc ## Summary ### Background The Excise and Taxation Commissioner, Haryana Sales Tax Department filed an application (IA No. 486/2021) seeking directions to the liquidator to accept their claim filed in Form C under the IBBI (Liquidation Process) Regulations, 2016. The department claimed that assessments were framed against the corporate debtor for the assessment years 2014-15 and 2016-17, resulting in a total tax due of Rs. 18,21,513. The applicant stated they became aware of the liquidation proceedings on 01.03.2021 and filed their claim via email. The liquidator informed them on 03.03.2021 that the last date for claim submission had passed on 26.12.2020. The corporate debtor argued that the claim was submitted beyond the stipulated time under Section 38(1) of the IBC 2016 and Regulation 33 of … ## Facts The Excise and Taxation Commissioner, Haryana Sales Tax Department, filed IA No. 486/2021 seeking acceptance of their claim in the liquidation process of M/s Karan Processors Private Limited. The department's claim was based on assessments for the years 2014-15 and 2016-17, totaling Rs. 18,21,513. The department filed the claim on 01.03.2021 after learning about the liquidation, but the liquidator had set a deadline of 26.12.2020. The corporate debtor argued the claim was filed late under Section 38(1) of the IBC 2016 and Regulation 33 of the IBBI Regulations. The corporate debtor was already liquidated with no assets. The key fact is the conflict between the statutory right of the tax department to a first charge on the debtor's assets under the Haryana Value Added … ## Issues and analysis ### Issue 1: Whether the Excise and Taxation Department's claim should be admitted despite being filed after the … **Ratio:** The ratio is based on the Supreme Court's decision in State Tax Officer Vs. Rainbow … **Reasoning:** The court reasoned that the time stipulations for filing claims are not mandatory, as is … **Interpretation:** The interpretation is that the statutory dues of the government, particularly … **Application:** The court applied this ratio to the present case by holding that the Excise and … ## Parties - **Judges:** Harnam Singh…; SUBRATA KUM… - **Appellants:** Excise and… - **Respondents:** M/s Karan… - **Advocates:** Piyush B… ## Timeline - **2014-01-01 — Assessmen…**: Assessment year 2014-15… - **2016-01-01 — Assessmen…**: Assessment year 2016-17… ## Legal provisions - [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54) --- 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/nclt-division-bench-court-i-chenn/karan-processors-private-limited-ia-no-486-2021-in-cp-ib-no339-chd-hry-2019-015a4fdc