GST DAILY – 502 : Once resolution plan approved, department is barred from  further claims: HC

THE HON’BLE ALLAHABAD HIGH COURT IN THE CASE OF

Arena Superstructures Pvt. Ltd. V/s Union of India, decided on 22-4-2025

 👉 Issue:-

✔️ Can department would be create any demand if Once resolution plan approved?

👉 The Hon’ble High Court Judgement:-

✔️ Assessee submitted that once resolution plan had been approved by NCLT, GST department could not create further dues by way of passing orders.

✔️ The HON’BLE Supreme Court in the case of Vaibhav Goel v. Deputy Commissioner of Income-tax [2025] 172 taxmann.com 601 (SC), held that successful resolution applicant cannot be faced with “undecided” claims after resolution plan had been accepted.

✔️ In view of same, it was clear that once resolution plan was approved by NCLT, all other creditors were barred from raising claims subsequently – Accordingly, impugned assessment order was to be set aside.

Section 74 of Central Goods and Services Tax Act, 2017