NCLAT Rejects State Tax Department's Claim Against Reliance Communications

The National Company Law Appellate Tribunal (NCLAT) dismissed a petition by the state tax department seeking dues from Reliance Communications, stating the claim was based on a post-insolvency assessment. The earlier National Company Law Tribunal (NCLT) decision rejected the department's Rs 6.10 crore claim initiated in 2021.

The National Company Law Appellate Tribunal (NCLAT) has dismissed a petition filed by the state tax department seeking dues from Reliance Communications (RCom). The dismissal was based on the assessment conducted post the initiation of the insolvency resolution process.

A two-member NCLAT bench upheld a previous decision by the Mumbai bench of the National Company Law Tribunal (NCLT), rejecting the state tax department's second claim amounting to Rs 6.10 crore. The claim surfaced from an assessment order dated August 30, 2021.

Insolvency proceedings for RCom began on June 22, 2019. The state tax department had initially filed a claim for Rs 94.97 lakh on July 24, 2019, which the NCLT admitted. However, the tribunal rejected the second claim, noting it was based on a 2021 assessment order, post-CIRP initiation. The NCLAT echoed the NCLT's decision, stressing the delay in filing could not be condoned.

(With inputs from agencies.)