The Supreme Court on Monday rejected Tata Steel’s appeal seeking clearance of all liabilities related to Bhushan Steel earlier, which it had acquired for ₹35,200 crore through the company’s bankruptcy resolution process in 2018.

Bhushan Steel under new management Tata Steel (TSL) has moved the Allahabad High Court to challenge various notices of demand issued by the UP government for more than ₹346 crore for commercial taxes, including Import Tax and Value Added Tax between 2007 and 2018.

The high court, which held that no amount was due and payable by TSL, has left the question of unjust enrichment – raised by the state – open, saying that this question could not be decided in a petition filed under Article 226 of the Constitution. , which arranges with the power of the high court to issue certain warrants.

Challenging the high court ruling, senior adviser KV Vishwanathan, who appeared for TSL, argued that the high court should rule on the matter as it needed to be a “clean register” for new management. “UP government can’t collect this tax after five years… The state government has failed to comply with the request… and for new management it is a closed chapter as resolution plans are approved in 2018,” he argued.

A Bench presided over by Judge MR Shah said the high court had nothing to say but left it open. “That issue cannot be raised at this time. What if the (tax) is returned and forwarded by the company?”

The top court also noted that the high court had left the question of unjust enrichment open, and no final decision had been made on this.

“The SLP (Special Leave Application) is dismissed. However, if any questions or concerns about unfair enrichment are raised, TSL will be open to defending/against the same and the defenses available to applicants that are left open will be dealt with according to law,” said Hakim Shah.

The Allahabad High Court said that Tata Steel had acquired BSL but since the request was made under an allegation judgment order which was alleged to be part of a settlement plan approved by the National Company Law Court, the order should not be recovered from TSL as the dues would be extinguished given the law set by the Supreme Court. in the previous decision.

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