IN THE NATIONAL COMPANY LAW TRIBUNAL

BENGALURU BENCH, BENGALURU

(Through Physical Hearing / VC Mode (Hybrid))

ITEM No.05

I.A.No.226/2024 in

C.P. (IB)No.137/BB/2019

IN THE MATTER OF:

M/s. India Renewable Energy Development Ltd. … Petitioner

Vs.

M/s. Nobel Inspat & Energies Ltd. … Respondent

Petition under Section 7 of IBC, 2016

I.A.No.226 of 2024:

IN THE MATTER OF:

M/s. SLD Steels Private Limited

(Successful Resolution Applicant of

M/s. Noble Ispat & Energies Limited)

R/o. at No.13/A, B.C.Mallaiah Layout,

(Near T.B.Sanitorium),

Bellary – 583 104 … Applicant

Vs.

Assistant Commissioner of Commercial Taxes

(LGSTO-460) Vanijya Therige Bhavan,

A Block Devaraj Aras Layout,

Davanagere – 577 006 … Respondent

Order delivered on: 21.03.2025

CORAM:

SHRI SUNIL KUMAR AGGARWAL

SHRI RADHAKRISHNA SREEPADA

PRESENT:

For the Applicant in I.A.226/2024 : Shri Dushyantha Kumar K., PC

For the Respondent in I.A. : Shri Sandeepani A. Neglur

ORDER

1. This Application has been filed by the Applicant/Successful Resolution Applicant, M/s. SLD Steels Private Limited, seeks directions to the Respondent, Assistant Commissioner of Commercial Taxes, Davanagere, Karnataka to allow Resolution Applicant to file Rectification Application under Section 69 of the KVAT Act, 2003, against the Reassessment Order of the Respondent in the light of the IBC Proceedings pending against the Corporate Debtor during the Limitation Period prescribed under Section

69 of the KVAT Act, 2003.

2. It is stated that the Resolution Plan in respect of the Corporate Debtor presented by the Applicant was approved by this Adjudicating Authority on 19.03.2021. The Applicant complied with various statutory formalities for restarting the business of the Corporate Debtor as per the Resolution Plan. On 02.02.2022 the Applicant had received a notice from the Respondent claiming Rs.9,29,83,010/- being the arrears of tax/ registration fee/Penalty levied on/payable by Corporate Debtor for the Assessment Year 2006-2007, 2007-2008 and 2009-2010 under KVAT Act, 2003. It was specified that failing payment of the same it will be recovered through attachment and sale of properties of the Corporate Debtor.

3. The aforesaid claim of the Respondent/Tax Authority had been rejected by the Resolution Professional of the Corporate Debtor during the CIRP, which remained unchallenged.

4. Referring to the approval Order dated 19.03.2021, it is averred that all claims commenced or initiated by any person against the Corporate Debtor in relation to the period prior to the date of implementation of Resolution Plan having stood extinguished, the Respondent cannot raise any demand. Pursuant to Order dated 07.04.2022 of this Adjudicating Authority, the Applicant had filed their objections to the notice of Respondent on 24.08.2022 but the same were rejected.

The Applicant was given liberty to approach the concerned Authority vide Order dated 06.09.2023 with regard to prayer made in I.A.No.95/BB/2023 but the limitation for filing rectification Application had elapsed in April 2019 itself as was pointed out in the objections filed by the Respondent.

5. It is stated that the reassessment Order was passed on 26.04.2014 against the Corporate Debtor which had five years at its disposal to seek rectification U/s.69 of the KVAT Act. The rectification Application however could not be filed by the Corporate Debtor owing to the fact that proceedings under the IBC were initiated before this Adjudicating Authority few days prior there to. Post approval of Resolution Plan the Applicant is sought to be fastened with the liability of the Corporate Debtor without any opportunity of seeking rectification or filing an Appeal. The Adjudicating Authority is therefore, sought to direct the Respondent to exclude the period of pendency of IBC proceedings against the Corporate Debtor for calculating the limitation U/s.69 of the KVAT Act.

6. The Respondent/Assistant Commissioner of Commercial Taxes has opposed the Application by referring to the paras of Order dated 19.03.2021 of thi