GST Update

 Desk of CA. Praveen Sharma – 1113  Series (CAPS) 

 Calcutta High Court IN THE CASE OF  SREI Equipment Finance Ltd. v. Union of India & Ors.

Citation: TS-838-HC(CAL)-2026-GST

Dispute: SREI Equipment Finance challenged an IGST demand of ?1,68,78,057, interest and ?16,87,806 penalty for FY 2021–22.

Insolvency proceedings: The company entered CIRP on 8 October 2021.

 Plan approval: NCLT approved the resolution plan on 11 August 2023.

 No GST claim lodged: Revenue had not submitted the disputed dues to the Administrator/Resolution Professional. 

Binding plan: Section 31(1) of the IBC binds government authorities; the plan extinguished pre-effective-date claims except those provided for.

No surviving liability: The disputed FY 2021–22 dues stood extinguished upon approval, leaving no claim for subsequent adjudication.

Adjudication also barred: Revenue could not distinguish assessment from recovery to pursue an extinguished claim.

Relief granted: The Court quashed the SCN, adjudication order, DRC-07 and separate interest notice for July–August 2021.

Outcome: In favour of SREI Equipment Finance. The writ was allowed; the Court expressed no opinion on subsequent liabilities

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Best Regards,

CA Praveen Sharma

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