The Calcutta High Court has quashed a ₹4.28 crore Goods and Services Tax (GST) demand raised for the financial year 2019–20 against a corporate debtor (CD) sold in liquidation as a going concern, reaffirming the IBC’s “clean slate” principle.
The company, M/s Rabirun Vinimay Pvt. Ltd., after failing to achieve resolution under the Corporate Insolvency Resolution Process (CIRP), was admitted into liquidation in March 2020. Subsequently, it was sold as a going concern, with the sale confirmed by the National Company Law Tribunal (NCLT) in December 2023.
The NCLT order had explicitly applied the Supreme Court’s ruling in Ghanashyam Mishra and Sons v. Edelweiss Asset Reconstruction Co. Ltd. (2021), which held…