Service Tax Appeal No. 195 of 2009: Abatement of Appeal After Approval of Resolution Plan

Case Name:

Service Tax Appeal No. 195 of 2009 - Tiffins Barytes Asbestos And Paints Ltd vs. Commissioner of CE & ST, Belgaum

Key Takeaways:

1. The appeal abates once the Insolvency Resolution Professional (IRP) is appointed and/or the resolution plan is approved.
2. The abatement of the appeal is in accordance with Rule 22 of CESTAT (Procedure) Rules, 1982.
3. The tribunal’s decision is based on the consistent view expressed in a series of cases referred to in the document.

Case Synopsis:

The Customs, Excise and Service Tax Appellate Tribunal, Bangalore, regarding Service Tax Appeal No. 195 of 2009. The appeal was filed by Tiffins Barytes Asbestos And Paints Ltd against the Commissioner of CE & ST, Belgaum.

The appeal was related to the non-payment of service tax on the services of Goods Transport Agency (GTA) used for the transportation of iron ore and red oxide minerals by the appellant. The demand for service tax was confirmed with interest and penalty, and the appellant preferred an appeal before the tribunal.

During the pendency of the appeal, M/s Udhyaman Investments Private Limited filed an application for Corporate Insolvency Regulation Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 against the appellant. The CIRP was initiated, and the insolvency process against the appellant was finalized with the approval of the resolution plan by the Hon’ble NCLT and NCLAT.

The main issue in the appeal was whether the appellant was entitled to continue with the appeal and claim relief after the approval of the resolution plan by the NCLT. The tribunal referred to Rule 22 of the CESTAT (Procedure) Rules, 1982, which states that where a party to the appeal is adjudicated as an insolvent, the appeal shall abate unless an application is made for the continuation of the proceedings by the successor-in-interest.

The tribunal cited several cases and observed that the appeal abates once the IRP is appointed and/or the resolution plan is approved. Consequently, the appeal abates as per Rule 22 of CESTAT (Procedure) Rules, 1982.

In conclusion, the tribunal pronounced the final order on 09/11/2023, stating that the appeal abates as per Rule 22 of CESTAT (Procedure) Rules, 1982.

FAQ:

Q1: What was the main issue in the appeal?

A1: The main issue was whether the appellant was entitled to continue with the appeal and claim relief after the approval of the resolution plan by the NCLT.

Q2: What rule was cited to support the abatement of the appeal?

A2: The abatement of the appeal was supported by Rule 22 of CESTAT (Procedure) Rules, 1982.