The Central Board of Indirect Taxes and Customs (CBIC) has issued a Standard Operating Procedure (SOP) for the National Company Law Tribunal (“NCLT”) cases in respect of the Insolvency and Bankruptcy Code, 2016 (“IBC”) in order to ensure the interests of revenue in cases involving GST/Customs duty recovery from the companies undergoing the liquidation process.
The circular stated that “A timeline of 90 days from the insolvency commencement date is available for filing of claims. However, it has been observed that there is an inordinate delay in filing of claims by Customs and GST authorities- This leads to their claims not being admitted and extinguished once a resolution plan is approved. lt is also observed that the authorities then litigate on the rejection o, each claim, despite the settled position that no claims can be raised once the plan is approved and no demands can be raised on the resolution applicant who has taken over the company through such a resolution plan”
As per the circular issued by the Board on Monday, the Board stated that the insolvency and Bankruptcy Board of India (IBBI) will share the details of public announcement for liquidation of companies in a timely manner.
“One of the reasons for such delay in filing of claims is that concerned Zonal office has not received information regarding initiation of the process in timely manner. Accordingly, it has been proposed that IBBI would share the details of the public announcement on a regular basis to an identified office/ officer or a centralized system and hence it has been requested that such office/ officer/ system in CBIC needs to be identified and intimated to the IBBI for implementing the system for sharing of information,” it said.
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