GST proceedings cannot initiate against a non-existent Company: Karnataka HC
M/s. Trelleborg Sealing Solutions (India) Private Limited was amalgamated and resulting in the creation of a new entity. Following the NCLT’s approval of the amalgamation, cancellation took effect on 29.11.2021.
It is submitted that despite the intimation of amalgamation of the company have made in writing, revenue issued five SCNs in the name of the transferor company. The assessee argued that these SCNs should be quashed, as they were issued to a non-existent entity. Once an amalgamating entity ceases to exist upon approved Scheme of Amalgamation, the question of continuing the proceedings as regards the non-existent company cannot be permitted.
Citing the Supreme Court decision in Maruti Suzuki (India) Ltd, the High Court (HC) reported that once an amalgamating entity ceases to exist upon an approved Scheme of Amalgamation, the question of continuing the proceedings as regards the non-existent company cannot be permitted.
The HC granted the Revenue the liberty to pursue proceedings against the appropriate entity as per the law. Accordingly the petitions were disposed off.
The copy of the order is as under:
From,
Krishnkant Jakhotia
Mobile No. :- 9422507911
Email Id :- taxtalknew@gmail.com
