Parabolic Drugs Ltd vs Bharuch

CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
AHMEDABAD

REGIONAL BENCH, COURT NO. 2

EXCISE APPEAL NO. 11047 OF 2017

[Arising out of OIO-BHR-EXCUS-000-COM-109-16-17 dated 31/01/2017 passed by Commissioner of
Central Excise, Customs & Service Tax – Bharuch]

PARABOLIC DRUGS LTD Appellant
Unit-IV, Chhachhrauli, Derabassi,
Mohali, Punjab
Vs.
COMMISSIONER OF CENTRAL EXCISE &
SERVICE TAX-BHARUCH Respondent
GST Bhawan, Subhanpura, Vadodara,
Gujarat-390023


Appearance:
Ms. Foram Shah, Advocate for the Appellant
Shri Rahul J. Dave, Superintendent (AR) for the Respondent


CORAM:
HON'BLE DR. AJAYA KRISHNA VISHVESHA, MEMBER ( JUDICIAL )

FINAL ORDER NO._10800/2026
Date of Hearing : 23.10.2026
Date of Decision : 28.10.2026
DR. AJAYA KRISHNA VISHVESHA
This appeal is directed against the Order-in-Original number BHR-Excus-
000-com-109-16-17 dated 31.01.17 through which the learned Adjudicating
Authority/Commissioner confirmed the demand of cenvat credit amounting to
Rs. 1,59,88,896/- along with interest in respect of inadmissible Cenvat Credit
wrongly availed on the basis of invoices under Rule 14 of the Cenvat Credit
Rules, 2004 read with Section 11A(4) of the Central Excise Act, 1944 and also
imposed penalty of Rs. 40,00,000/- on the appellant M/s. Parabolic Drugs
Limited.
1.1 The facts of the case in brief are that erstwhile appellant M/s. Parabolic
Drugs Limited was registered with Central Excise department for the
manufacturing of excisable goods (pharmaceutical goods under chapter 29 of
CETA 1985). Appellant was availing benefits of Cenvat Credit of the duty paid

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on the inputs and capital goods. On 12.02.2013, officers of Directorate
General of Central Excise Intelligence visited the manufacturing plant of the
appellant and alleged that the appellant had shown receipt of 6600 kg of
Methyl Triflate purchased from M/s. Survival Technologies Private Limited
during the period 26.09.2012 to 11.12.2012 and cleared final product
Potassium Triflate to M/s. Survival Technologies Private Limited.
1.2 The allegations against the appellant are that they have not received
the goods from STPL and had not supplied any goods to STPL. A Show Cause
Notice dated 11.05.2015 was issued to M/s. Parabolic Drugs Limited as to why
Cenvat Credit of Rs. 1,46,83,680/- should not be recovered from them.
Parallel proceedings were also initiated against the STPL. Proceedings through
SCN were initiated against the appellant goods i.e. Potassium Triflate
manufactured by the appellant and cleared to STPL but not received by STPL
for recovery of Rs. 1,59,88,896/- along with penal proceedings under Rule
26(2) of Central Excise Rules, 2002.
1.3 Meanwhile, Central Board of Excise and Customs vide notification dated
28.9.2016 revised the monetary limit for adjudication of Show Cause Notices
by Central Excise officers and issued circular dated 29.09.2016 revising
pecuniary jurisdiction for adjudication of cases by learned Commissioner which
was fixed at Rs. 2,00,00,000/- or more. Request was made by the appellant
to the Commissioner to transfer the case to Additional Commissioner or Joint
Commissioner as per notification, however, the Commissioner ignored the
request and passed the impugned order.
2. The learned Counsel for the appellant submitted that the impugned
order has been passed without taking into consideration the pecuniary
jurisdiction as the amount involved was less than 2 crore and the order should
have been passed by the Additional Commissioner or Joint Commissioner as
per notification dated 28.9.2016.

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2.1 The learned Counsel for the appellant also submitted that the present
appeal was filed by the erstwhile applicant which was dismissed by the
Tribunal for non-prosecution on 06.11.2024. The present applicant M/s. Pure
and Cure Health Care Private Limited when came to know about the order
dated 6.11.2024, filed application for restoration of appeal which was allowed
vide order dated 23.6.2025.
2.3 The learned Counsel for the appellant also submitted that Corporate
Insolvency Resolution Process had been initiated by one of the Operational
Creditors against M/s. Parabolic Drugs Limited before the Hon’ble NCLT
Chandigarh.
2.4 The Hon’ble NCLT was pleased to admit the matter and declare
moratorium in terms of Section 14 (1) vide order dated 23.8.2018. As per the
procedure, the Interim Resolution Professional was appointed and then
Resolution Professional was also appointed. Claims were invited from the
creditors by publication in newspaper etc. The Committee of Creditors was
also constituted and after following the due process, the resolution plan was
submitted by Akums Drugs and Pharmaceuticals Limited which finally came to
be approved by the Committee of Creditors. After following the due process
and compliance of the provisions of Insolvency and Bankruptcy Code, the
bench was pleased to approve the Resolution Plan vide order dated 12.1.2021.
Subsequently, the Certificate of Incorporation of Akums Life Sciences Limited
was issued and the company Parabolic Drugs Limited was converted into
Akums Life Sciences Limited vide Incorporation Certificate dated 23.2.2021.
Thereafter, Hon’ble NCLT, New Delhi in Company Petition No. CAA-
07(ND)/2023 seeking amalgamation / merger, passed order dated
17.10.2023, whereby the Scheme of Amalgamation was approved and the
company namely Akums Life Sciences Limited got merged in Pure and Cure
Health Care Private Limited.

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2.5 The concluding submission of the learned Counsel for the appellant is
that in the light of the proceedings under the Insolvency and Bankruptcy code,
no claim, suit can continue as per Section 14 (1) of the IBC. Recently, similar
view has been taken by the Hon’ble Apex Court in the case of Vaibhav Goyal
vs. Deputy Commissioner of Income Tax on 20.03.2025. The applicant
has already paid all the dues as per the Resolution Plan approved by Hon’ble
NCLT under Section 13 (4) of the IBC. Hon’ble NCLT has categorically held so
in para 41 of the order dated 12.01.2021.
2.6 The learned Counsel for the appellant prayed that in the light of the
aforesaid proceedings, without going into the merits of the matter, the appeal
may be decided by the Tribunal.
3. The learned AR reiterated the impugned order passed by the learned
Commissioner.
4. I have heard the learned Counsel for the appellant and the learned AR
for the department and perused the record.
4.1 I agree with the learned Counsel for the appellant that in the light of the
proceedings under the Insolvency and Bankruptcy Code, no claim or suit can
continue as per Section 14(1) of the IBC. In Vaibhav Goyel vs. Deputy
Commissioner of Income Tax reported at 2025 (0) AIJEL-SC 740932
Hon’ble Supreme Court of India has held as follows:-
“ 8. In view of the declaration of law made by this Court, all the dues including
the statutory dues owed to the Central Government, if not a part of the
Resolution Plan, shall stand extinguished and no proceedings could be
continued in respect of such dues for the period prior to the date on which the
adjudicating authority grants its approval under Section 31 of the IB Code. In
this case, the income tax dues of the CD for the assessment years 2012-13
and 2013-14 were not part of the approved Resolution Plan. Therefore, in view
of sub-section (1) of Section 31, as interpreted by this Court in the above
decision, the dues of the first respondent owed by the CD for the assessment
years 2012-13 and 2013-14 stand extinguished. ”

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4.2 The learned Counsel for the appellant has submitted copy of order dated
12.01.2021 issued by National Company Law Tribunal, Chandigarh in CA No.
389/2019 under Section 30(6) of the Insolvency and Bankruptcy Code, 2016
in the matter of Whether Makers Private Limited vs. Parabolic Drugs
Limited in which at page number 25 paragraph number 41, following has
been held:-
“ In view of the above discussion, the resolution plan submitted by M/s.
Akums Drugs & Pharmaceuticals Ltd. as approved by the CoC under
Section 30 (4) of the Code is approved and the resolution plan so
approved shall be binding on the corporate debtor and its employees,
members, creditors including the Central Government, any State
Government or any local authority to whom a debt in respect of the
payment of dues arising under any law for the time being in force, such
as authorities to whom statutory dues are owed, guarantors and other
stakeholders involved in the resolution plan.”
From the above order, it is clear that the resolution plan was approved by the
National Company Law Tribunal vide order dated 12.01.2021.
4.3 Learned Counsel for the appellant has also submitted copy of Certificate
of Incorporation pursuant to change of name in which it has been certified
that the name of the company has been changed from Parabolic Drugs Limited
to Akums Life Sciences Limited w.e.f. the date of this certificate i.e.
23.02.2021.
4.4 The learned Counsel for the appellant has also submitted copy of order
dated 17.10.2023 passed in company Petition No. CAA(ND)/2023, in which
National Company Law Tribunal has held that the transferor company Akums
Life Sciences Limited stand dissolved from the appointed date of
amalgamation i.e. 01.04.2022 and all liabilities of the transferor company
shall stand transferred to the transferee company i.e. Pure And Cure Health
Care Private Limited.

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4.5 Therefore, in view of the facts and circumstances of the case as
mentioned above and in view of the principles of law propounded by Hon’ble
Supreme Court in Vaibhav Goyal vs. Deputy Commissioner of Income
Tax (supra), I am of the opinion all the dues including the present demand
owed to the Central Government, if not a part of the resolution plan, shall
stand extinguished and no proceedings could be continued in respect of such
dues for the period prior to the date on which the Adjudicating Authority
granted its approval under Section 31 of the IB code and the appeal is liable
to be allowed in above terms.
5. Consequently the appeal is allowed in above terms.



(Order pronounced in the open Court on 28.10.2026)



(AJAYA KRISHNA VISHVESHA)
MEMBER ( JUDICIAL )

Dharmi