The Delhi High Court will examine whether companies undergoing liquidation can seek exemption from the mandatory pre-deposit requirement under Section 107(6) of the Central Goods and Services Tax (CGST) Act.
The issue is whether the requirement can be relaxed in view of the statutory distribution mechanism under the Insolvency and Bankruptcy Code (IBC).
A Division Bench of Justices Anil Kshetarpal and Bharat Parashar requested Additional Solicitor General of India Raghavendra Shankar to assist the Court in examining the interplay between Section 107(6) of the CGST Act and the IBC, including whether the liquidation framework under Section 53 of the IBC affects the statutory pre deposit requirement.
The writ petition filed by Moser Baer…