Decided 1 September 2026. The Punjab and Haryana High Court has quashed GST demands of about ₹1.62 crore relating to periods before the corporate insolvency resolution process (CIRP) of Ballarpur Industries, following the Supreme Court in Ghanashyam Mishra. A small demand for a period after the CIRP was finalised was left untouched.
Case at a glance
| Case | Ballarpur Industries Ltd. & Anr. v. Assistant Commissioner, CGST Division, Yamunanagar & Ors. |
| Forum | Punjab and Haryana High Court (Acting Chief Justice Ashwani Kumar Mishra and Justice Rajesh Gaur) |
| Case No. | CWP-25020-2026 (O&M) |
| Date of decision | 1 September 2026 |
| Demands quashed | FY 2019-20: ₹1,60,82,836; FY 2021-22: ₹1,27,012 (with interest and penalty) |
| Demand surviving | FY 2023-24: about ₹35,848 |
| Result | Writ partly allowed |
Facts of the case
The petitioner had gone through CIRP under the Insolvency and Bankruptcy Code, and a resolution plan was approved. GST demands were later raised for FY 2019-20 and 2021-22, prior to initiation of CIRP, and for FY 2023-24, after the CIRP was completed.
Issue before the High Court
Can GST demands for periods before CIRP be enforced against a company after its resolution plan is approved?
What the High Court held
- Both sides agreed that demands for periods prior to CIRP are covered by Ghanashyam Mishra and Sons v. Edelweiss Asset Reconstruction (Supreme Court, 2021): claims not part of the approved resolution plan stand extinguished.
- The FY 2019-20 and 2021-22 demands were quashed, with interest and penalty in proportion.
- The FY 2023-24 demand related to a period after CIRP and was not questioned by the petitioner; it stands.
Practical takeaways for taxpayers
- Companies acquired under an approved resolution plan should challenge any GST demand for pre-CIRP periods not included in the plan.
- GST departments must file claims before the resolution professional; demands raised later for old periods are generally unenforceable.
- Post-CIRP periods remain fully subject to GST.
Frequently asked questions
What happens to GST dues after a resolution plan is approved?
Dues for periods before CIRP that are not part of the plan stand extinguished, as held by the Supreme Court in Ghanashyam Mishra.
Are post-resolution GST dues affected?
No. Liabilities for periods after the CIRP must be paid normally.
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This summary is based on the order of the Punjab and Haryana High Court in CWP-25020-2026. It is general information, not legal advice; the outcome of any case depends on its own facts and the full text of the order.