Gujarat High Court

Srei Equipment Finance Limited vs Office Of The Principal Commissioner , ... on 11 September, 2025

Author: Bhargav D. Karia

Bench: Bhargav D. Karia

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                          C/SCA/10016/2025                                        JUDGMENT DATED: 11/09/2025

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                                   IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                                    R/SPECIAL CIVIL APPLICATION NO. 10016 of 2025


                      FOR APPROVAL AND SIGNATURE:


                      HONOURABLE MR. JUSTICE BHARGAV D. KARIA
                      and
                      HONOURABLE MR. JUSTICE PRANAV TRIVEDI
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                                  Approved for Reporting                         Yes           No
                                                                                               No
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                                      SREI EQUIPMENT FINANCE LIMITED
                                                   Versus
                          OFFICE OF THE PRINCIPAL COMMISSIONER , CENTRAL GST AND
                                  CENTRAL EXCISE COMMISSIONERATE & ORS.
                      ================================================================
                      Appearance:
                      MR PAVAN S GODIAWALA(2936) for the Petitioner(s) No. 1
                      MR PRADIP D BHATE(1523) for the Respondent(s) No. 3
                      MS. KETKI P JHA(9864) for the Respondent(s) No. 1,2
                      ================================================================

                        CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA
                              and
                              HONOURABLE MR. JUSTICE PRANAV TRIVEDI

                                                           Date : 11/09/2025

                                                           ORAL JUDGMENT

(PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)

Heard learned advocate Mr.Pavan S.

Godiawala for the petitioner, learned advocate

and learned Assistant Government Pleader

Ms.Shrunjal Shah for the respondent No.3.

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1. Rule, returnable forthwith. Learned

advocate Ms.Ketki Jha waives service of notice

of rule for and on behalf of the respondent

Nos.1 and 2 and learned Assistant Government

Pleader Ms.Shrunjal Shah waives service of

notice of rule for and on behalf of the

respondent No.3.

2.1. Learned advocate Mr.Pavan Godiawala

for the petitioner submitted that the

petitioner has challenged the Order-in-

Original dated dated 26th February, 2025

passed by the respondent No.2-Assistant

Commissioner of State Tax, Unit-8, Ahmedabad

under Section 73 of the Gujarat Goods and

Services Tax Act, 2017.

2.2. It was submitted that the petitioner-

Company is a Non-Banking Finance Company

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engaged in the business of equipment financing

logistic solutions, etc. and by order dated

08.10.2021 passed by the NCLT, Kolkatta Bench,

CIRP was initiated against the SREI

Infrastructure Finance Limited (SIFL).

2.3. Learned advocate Mr.Pavan Godiawala

submitted that a Resolution plan submitted by

National Asset Reconstruction Company Limited

for the Corporate Debtors came to be approved

under Section 31 of the Insolvency and

Bankruptcy Code, 2016 vide order dated

11.08.2023 passed by the NCLT, Kolkatta.

3. The National Company Law Tribunal, by

order dated 11th August, 2023 held as under :

"115. We have perused the reliefs, waivers and concessions as sought and as given in Section 10 at Pages 105-115 of the Resolution Plan. While some of

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the reliefs, waivers and concessions sought by the Resolution Applicant come within the purview of the Code while many others fall under the power and jurisdiction of different government authorities/departments. This Adjudicating Authority has power to grant reliefs, waivers and concessions only in relation to the Code and the Companies Act 2013 (within the powers of the NCLT) for achieving the objective of the Code. No reliefs, waivers and concessions that fall within the domain of other government department/authorities are granted. The reliefs, waivers and concessions that pertain to other governmental authorities/departments shall be dealt with the respective competent authorities/forums/offices, Government or Semi Government of the State or Central Government with regard to the respective reliefs, waivers and concessions. The competent authorities including the Appellate authorities may consider grant such reliefs, waivers

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and concessions keeping in view the spirit of the Code.

118. With respect to the waivers with regard to extinguishment of claims which arose Pre-CIRP and which have not been claimed are granted in terms of Ghanashyam Mishra and Sons Pvt Ltd v Edelweiss Asset Reconstruction Company Ltd, wherein the Hon'ble Supreme Court has held that once a resolution plan is duly approved by the Adjudicating Authority under sub-section (1) of section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the Corporate Debtor and its employees, members, creditors, including the Central Govt, any State Govt or any local authority, guarantors and other stakeholders. We place reliance on the recent judgement of Hon'ble High Court of Rajasthan in the matter of EMC v. State of Rajasthan wherein it has been inter-alia held that :

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"Law is well-settled that with the finalization of insolvency resolution plan and the approval thereof by the NCLT, all dues of creditors, Corporate, Statutory and others stand extinguished and no demand can be raised for the period prior to the specified date."

On the date of approval of resolution plan by the Adjudicating Authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan. The Hon'ble Supreme Court also held that all the dues including the statutory dues owed to the Central Govt, any State Govt or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the

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Adjudicating Authority grants its approval under section 31 could be continued."

4. In view of the above observation made by

the NCLT, the respondent-Authority could not

have issued the notice as held by the Hon'ble

Apex Court in case of Ghanashyam Mishra and

Sons Pvt. Ltd. Versus Edelweiss Asset

Reconstruction Company Ltd reported in 2021 9

SCC 657 as under :

"102. In the result, we answer the questions framed by us as under:

102.1. That once a resolution plan is duly approved by the adjudicating authority under sub-section (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the corporate debtor and its employees, members, creditors, including the Central Government, any State Government or any

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local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the adjudicating authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan.

102.2. The 2019 Amendment to Section 31 of the I&B Code is clarificatory and declaratory in nature and therefore will be effective from the date on which the I&B Code has come into effect.

102.3. Consequently all the dues including the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the

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adjudicating authority grants its approval under Section 31 could be continued."

5. Considering the above decision as well as

the order passed by the NCLT, the impugned

order dated 26th February, 2025 passed by the

respondent No.2 would not survive as the same

is passed for Financial Year 2021 raising the

demand under the GST Act which is prior to the

date of the order of the NCLT passed on 11th

August, 2023 approving the Resolution Plan

wherein, the NCLT has held that on the date of

approval of the Resolution Plan, all claims

which are not part of the Resolution Plan

shall stand extinguished and no person would