Indirect tax appellate tribunal CESTAT has asked the Central Board of Indirect Taxes and Customs (CBIC) to frame guidelines to deal with outstanding tax demands against companies facing insolvency proceedings. Giving its ruling in the Ultratech Nathdwara Cement Ltd case, the Ahmedabad bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) observed that the revenue department has no proper guideline as to what stand is to be taken in a case where the proceedings under the Insolvency and Bankruptcy Code (IBC) is in progress before NCLT/NCLAT or at the higher forum.
The tribunal noted that the assessee against whom the IBC proceedings are initiated approached CESTAT for disposing of the appeals in the light of the NCLT’s orders. However, in the absence of any guideline by the CBIC, the tax officers are unaware as to what stand is to be taken in such cases.
“Therefore, we are of the view that the Central Board of Indirect Taxes & Customs (CBIC) may consider issuing guidelines/procedures for dealing with the case before this tribunal wherein, against the assessee’s company IBC proceeding has been initiated,” the CESTAT said in an order dated October 20.
Source: The Economic Times
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