Thiru.Arooran Sugars Ltd. v. the State of Tamil Nadu
Case brief
What is this about?
Clean slate theory; corporate liquidation during pendency of tax appeal; NCLT-appointed Liquidator (IBA/243/2019); Scheme of Compromise; transfer of assets to M/s KALS Distilleries Private Limited (NCLT order dated 02.05.2022); non-disclosure of pending litigation by transferee; standing of successor company to continue predecessor's tax case; refund of commercial tax on sugarcane purchases at Rs.60/- per metric tonne versus 8% of turnover; Assessment Year 1997-1998; Section 38 Tamil Nadu General Sales Tax Act, 1959; Tax Case (Revision) against Sales Tax Appellate Tribunal order T.A.No.57/2006 dated 20.04.2017; dismissal without costs; Madras High Court.
What did the court decide?
On the records there is no disclosure of the pendency of the appeal before this Court; applying the clean slate theory, the company which has taken over the assets and properties of the appellant can have no claim or right to sustain the present tax case, and if any provision envisages continuation of the litigation by such company, it must work out its remedy in the manner known to law.