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Commissioner Of Customs (Import) vs Mr. Ashish Chhawchharia

National Company Law Appellate Tribunal10 May 2024Ashok Bhushan

Ratio decidendi

The rule this decision rests on

The Adjudicating Authority's order is upheld on the basis that the question is governed by the Supreme Court's decision in Sundaresh Bhatt, Liquidator of ABG Shipyard v. Central Board of Indirect Taxes and Customs, which the Tribunal treats as covering the case fully. Under that principle, goods held by Customs in a bonded warehouse of a corporate debtor under insolvency, where the Customs authority had no right to detain them, must be released to the resolution process, and a claim for such goods is to be pursued within the CIRP.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH, NEW DELHI Comp. App. (AT) (Ins) No. 789 of 2024 & I.A. No. 2857 of 2024 IN THE MATTER OF: Commissioner of Customs (Import) ...Appellants Versus Ashish Chhawchharia, ...Respondents Resolution Professional For Jet Airways (India) Pvt. Ltd.

Present: For Appellant : Mr. Aditya Singla, Sr. Advocate. For Respondents : Mr. Dhiraj Kumar Totala, Mr. Nishant Upadhyay, Mr. Ankit Pal and Mr. Ajay Raj, Advocates.

ORDER

(Hybrid Mode)

10.05.2024: IA No. 2857 of 2024

This is an application praying for condonation of 15 days delay in filing the

appeal and the ground taken in the affidavit is that the time was taking in

processing the file at different level of the different officers of the Department of

Customs in which details have given in the steps taken in paragraphs- 5 to 8 of

the application. We find sufficient cause for condoning the delay. Delay in filing

the appeal is condoned.

Comp. App. (AT) (Ins) No. 789 of 2024

Heard counsel for the appellant. This appeal has been filed against the

order passed by Adjudicating Authority dated 2.1.2024 passed in MA No. 4018

of 2019. An application in the CIRP of Corporate Debtor (Jet Airways (India) Pvt.

Ltd) commenced on 20.6.2019 in the CIRP Resolution Plan submitted by consortium of Mr. Murari Lal Jalan and Mr. Florian Fritsch was approved on

22.6.2021 by Adjudicating Authority and IA No. 4018 of 2019 was filed by the

erstwhile 'Resolution Professional' seeking direction against the appellant not to

dispose of any the assets of Corporate Debtor held by them and they to hand

over the assets retain by them in the customs bonded warehouse. The

Adjudicating Authority heard the parties and by impugned order has partly

allowed the application. The Adjudicating Authority referred and relied upon the

judgment of Hon'ble Supreme Court in Sundaresh Bhatt, Liquidator of Abg

Shipyard Vs. Central Board of Indirect Taxes and Customs Civil Appeal No. 7667

of 2021. Adjudicating Authority has returned the findings that the respondent

had no right to detain the goods and obligated to release the same and further

as claim in CIRP process has been filed. We are of the view that no error has

been committed by Adjudicating Authority in disposing of the application no.

4018 of 2019. The case is fully covered by the judgment of Supreme Court in

Sundaresh Bhatt (supra). In view of the aforesaid, we do not find any error in the

order warranting interference in this appeal. Hence, Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

[Arun Baroka] Member (Technical) harleen/NN Comp. App. (AT) (Ins) No. 789 of 2024 & I.A. No. 2857 of 2024

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