The Delhi High Court has sought the Centre’s assistance in examining whether companies undergoing liquidation under the Insolvency and Bankruptcy Code (IBC) can be exempted from the mandatory pre-deposit requirement for filing appeals against GST demands.
The court is examining whether a liquidator should be required to deposit part of a disputed tax demand to pursue an appeal under Section 107(6) of the Central GST Act, when the company’s assets must be distributed among creditors according to the priority rules under Section 53 of the IBC.
The issue has come up in a petition filed by Moser Baer India Ltd, which is undergoing liquidation, through its liquidator, Anil Kohli.
In an order dated October 9, a bench of…