Excelsior Correspondent
JAMMU, Mar 14: Division Bench of the High Court comprising Chief Justice Pankaj Mithal and Justice Sindhu Sharma has restrained the Government from making recovery of Value Added Tax (VAT) from Tata Steel Limited.
The direction has been passed in a petition filed by Tata Steel Limited whereby challenge has been thrown to the proceedings for recovery of dues of Value Added Tax (VAT) under the Jammu and Kashmir Value Added Tax Act, 2005 in terms of the notice of demand dated 10.03.2020 pursuant to the assessment order dated 10.03.2020 passed by Assessing Authority, Commercial Taxes Circle ‘J’, Jammu, and all consequential proceedings thereto including the order dated 28.10.2020 issued by the Senior Audit Officer and order dated 12.07.2021 issued by the Assessing Authority, Commercial Taxes Circle ‘J’, Jammu.
Senior Advocate Pranav Kohli assisted by Advocates Sanjeet Ranjan and Rahul Sharma appearing for the petitioner submitted that that after the resolution plan prepared by the resolution professionals and approved by the Committee of the creditors has been accepted and approved by the National Company Law Tribunal on 15.05.2018, in exercise of powers under Section 31 of the Insolvency & Bankruptcy Code, 2016, no claim or demand by any operational creditors which includes the Central Government and the State Government or any local authority can be raised in respect of any dues including the statutory dues in respect of the period prior to the effective date of the approved resolution.
Senior Advocate Kohli placed reliance upon the three judges bench decision of the Supreme Court in case titled ‘Ghanashyam Mishra and Sons Private Limited through the Authorized Signatory Versus Edelwelss Asset Reconstruction Company Limited through the Director and others’.
After hearing both the sides, the DB observed, “we are prima facie satisfied that the respondents cannot recover any amount as claimed through the impugned notice and the consequential proceedings. The Advocate General is, therefore, allowed two weeks’ time to file response to this writ petition”, adding “until further order no coercive steps shall be taken against the petitioner for recovery or realizing any amount pursuant to the impugned notice of demand and the consequential proceedings thereto”.
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