Legal principle

Once a Resolution Plan is approved under Section 31(1) of the IBC, a pre-CIRP customs claim that was never submitted during the CIRP stands extinguished and cannot be enforced against the Corporate Debtor, Section 238 of the IBC prevailing over the Customs Act.

Court decision

The writ petition was allowed and the Impugned Order dated 02.06.2026 was quashed and set aside in favour of the petitioner; the Court expressly declined to decide the merits of classification or exemption eligibility, holding only that the pre-CIRP customs claim, having been unfiled in the CIRP and extinguished under the approved Resolution Plan, could not be adjudicated and enforced against the Corporate Debtor.

Facts

Jaiprakash Associates Limited imported Digital and Network Video Recorders on 15.09.2023 vide Bill of Entry No.7856824 at an assessable value of Rs.45,40,569/-, classifying them under CTH 85219090 and availing 10% Basic Customs Duty under Serial No.499A of Notification No.50/2017-Customs. CIRP commenced against the petitioner on 03.06.2024, but the Customs Department filed no claim before the Resolution Professional within the prescribed timelines. The Department issued a Section 28(1) SCN dated 10.09.2025 alleging the goods were liable to 20% BCD, and the Additional Commissioner, by Order-in-Original dated 02.06.2026 (after NCLT approval of the Resolution Plan on 17.03.2026), confirmed differential duty of Rs.5,89,366/-, interest under Section 28AA, and a penalty of Rs.4,00,000/- under Section 117. The petitioner challenged the order in a writ petition under Article 226.

Key provisions

• Section 28(1), Customs Act, 1962 — Recovery of duties not levied or not paid or short-levied or short- paid or erroneously refunded
• Section 28AA, Customs Act, 1962 — Interest on delayed payment of duty
• Section 117, Customs Act, 1962 — Penalties for contravention etc not expressly mentioned