The approval of a resolution plan under the Insolvency and Bankruptcy Code extinguishes all prior tax liabilities of a corporate debtor, affirming the legal cleansing effect of the IBC.

JUDGMENT :

PRANAV TRIVEDI, J.

1. Heard learned Senior Advocate Mr.Saurabh Soparkar with learned advocate Mr.Jay Kansara, for M/s. Wadiaghandy & Co.,for the petitioner and learned Assistant Government Pleader Ms.Shrunjal Shah for the respondent in Special Civil Application Nos.9855 of 2025 and 10988 of 2025 and Ms.Hetvi Sancheti, learned Assistant Government Pleader for the respondent in Special Civil Application No.9864 of 2025.

2. Rule returnable forthwith. Learned Assistant Government Pleader Ms.Shrunjal Shah, waives service of notice of rule on behalf of the respondent.

3. With consent of learned advocates for the respective parties, the matters are taken up for hearing as the issue involved is very short. All the three petitions have common issue, therefore, are being disposed of by this common order and judgement. For the sake of convenience, the facts of Special Civil Application No.9855 of 2025 are taken as lead matter.

4. The petition has been filed under Article 226 of the Constitution of India, with the following prayers:

“(a) Issue a writ of certiorari and/or any other appropriate writ, order or direction quashing and setting aside (i) order dated 8^th April 2022 for FY 2019-20 at Annexure A passed by Respondent No.2, (ii) order dated 9^th December 2024 at Annexure B for FY 2017-18 passed by Respondent No.2; (iii) order dated 15^th February 2025 at Annexure C, for FY 2020-21 passed by Respondent No.3 against the petitioner; and (iv) Notice dated 5^th June 2025 at Annexure D, for FY 2021-22 issued by Respondent No.2; (iv) Show Cause Notice dated 12^th June 2025, at Annexure E for FY 2018-19 issued by Respondent No.4; (vi) Show Cause Notice dated 27^th June 2025 at Annexure F, for FY 2018-19 issued by Respondent No.4; and (vii) Show Cause Notice dated 30^th June 2025 at Annexure-G for FY 2018- 19 issued by Respondent No.3 along with all other proceedings or coercive action relating thereto;

(b) Issue an appropriate writ, order or direction restraining the Respondents from taking any action for recovery of GST, penalty, interest charges or other claims of any kind relating to a period prior to the Effective Date i.e. 29th March 2023 under the Gujarat Goods and Services Tax, 2017 read with Central Goods and Services Tax, 2017 read with Integrated Goods and Service Tax Act, 2017;

(c) Issue an appropriate writ, order or direction to the Respondents for withdrawing / removing the outstanding demand / liability reflecting against the Petitioner’s GST NO. 24AADCB1921F2Z9 on the GST portal in respect of (I) order dated 8^th April 2022 for FY 2019-20 at Annexure A passed by Respondent No.2; (ii) order dated 9^th December 2024 at Annexure B for FY 2017-18 passed by Respondent No.2; and (iii) order dated 15^th February 2025 at Annexure C for FY 2020-21 passed by Respondent No.3 against the petitioner;

(d) Issue a Writ of Mandamus and / or any other appropriate writ, order or direction to the Respondents to issue intimation in Form DRC GST-25 to the Petitioner in accordance with Section 84 of the Gujarat Goods and Services Tax Act, 2017 read with Rule 161 of the Gujarat Goods and Service Tax Rules, 2017 and Circular No.187/19/2022-GST dated 27^th December 2022;

(e) Pending admission, hearing and final disposal of the present Petition, this Hon’ble Court be pleased to stay the effect, operation and implementation of the (i) order dated 8^th April 2022 for FY 2019-20 at Annexure A passed by Respondent No.2, (ii) order dated 9^th December 2024 at Annexure B for FY 2017-18 passed by Respondent No.2; (iii) order dated 15^th 15^th February 2025 at Annexure C for FY