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Instruction l1o. 1O€t3lOa 12022 CXg da1e.d 23.O5.2022

cl.t-, . 296!28e' ;202't -CX. I

Gor.,ernnreni of Irtdia
llinislry ol Finance
Dgpartmenl o{ Revenue
central Board & cusloms
{l*T::ll?*s
6tr{r Ti. 267a,dr2t E#6,a-t frEfr
q6im: -'23-05-2022
To
All Principal Chief Commissione(s)/ Chief Commissione(s) of Customs/
Customs (Preventive)/ Customs & CGST,
All Principal Chief Commissione(s)/ Chief Commissione(s) of CGST,
Webmaster:[email protected]

Madam/Sir,

Subject: Standard Operating Procedure (SOP) for NCLT cases in reapect of

the lnsolvency and Bankruptcy Code (lBC)- reg. '

I am directed to inform that the lnsolvency andrBankruptcy Board of lndia

has requested that rote of GST and Customs authorities in'ceriain key isSues:
under the lnsolvency and Bankruptcy Code, 20i6rheeds to be formulated.
Further, GST and Customs Authorities have beeniblassified as operational
Creditors and are required to submit their claims against corporate debtors when
the Corporate, insolvency and resolution process: is initiated and public
announcement inviting claims is made by the insolvency professional.

,,: "2. A timeline of g0 days from the insolvenlcy :commencement date is .

available for filing of claims. Hbwevef il has beeh

gbserveO that there is an
inordinate delay in filing of claims by Customs and GST:authorities- This leads tci
their claimS not being admihed ahd extinguished once a resolution ptan,. is ,

dpproved. lt is also observed that the authorities then litigate on the rejectioh o,
each claims, despite the seftled position lhat no claims can be raised once the
plan is approved and no demands can be raised on tle resolution applicant who
has taken over the company lhrough such a resolution plan. ., ;,
' 3. One of the reasons f6r such delay in filing ol claims is that concerned
Zonal otlice has not received information iegarding initiation of the procesb in
timely manner. Accordingly, it has been proposedi that lBBl would share the
details of the public announcement on a regular basis tcjhn identified office/ otficer
or a centralized system and hence it has been requested thal such office/ officer/
system in CBIC needs to be identified and intimated to'the lBBl for implementing ,
the system for sharing of information.

4.
Accordingly, please find enclosed guidelines (SOP) as(Annexure A) to
ensure a robust mechanism of communication lrom the nominated ofiicer to the

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l/46120/20?2

field lormations and vice-versa and subsequent monitoring of action taken by the
field formations on such communication by the Nodal Officer. lt may be noted that
CBIC has nominated ADG, DGPM as the Nodal Officer, as has been detailed in the
SOP, lor this purpose.

s I L'
Fn-sqs'O
qRd*R?ht{ *er+sqfus
01 1-2309 241

copy to ADG, DGPM, CBIC for inlormation and necessary action

Annexure A

Standard Operating Procedure (SOP) for NCLT cases

The lnsolvency and Bankruptcy Code (lBC), 2015, was enacted to consolidate the
fragmented laws pertaining to insolvency. The IBC handles the insolvency proceedings cases
through tribunals i.e. NCLT and appellate tribunal NCLAT. The code recognizes three ditferent
types of creditors: Financial Creditors, Operational Creditors and other Creditors. Section 5(20)
ol the Code defines an Operational debt as ':a claim in rcspect ol the provisions of goods or
services including employment or a debt in rcspect of the payment of dues arising under any
law for the time being in force and payable to the Central Government, any State Government
or any local authority.'

An Operational creditor has the right to file an application to initiate the insolvency
resolution process of a corporate debtor and to file a claim in the insolvency resotution process
and to participate, without voting rights, in a comminee ol creditors through lheir
represenlatives.

The basic purpose of nominating a Nodal Officer is to ensure riling ol the claims with the
lBBl in a timely manner and within the period ol 90 days from the insolvency commencement
date. ln lhe interest of protection of government revenue and to make the entire process
smooth and et ective, CBIC has nominated the Additional Director General, DGPM as the
Nodal Officer lor the CBIC for the receipt of information regarding initiation of the insolvency
resolution process and dissemination of the same to the field lormations lor necessary action
at their end in terms of the provisions of the lnsolvency and Bankruptcy Code, 2016.

Accordingly, the SOP, as outlined below, may be lollowed in view ot the appointment ol
Nodal Officer i

i. The Additional Director General, DGPM (hereinatter referred as the Nodal Officeo
will receive the information regarding initiation ot the insolvency resolution process ol a
univcompany from the lBBl for which a dedicated email lD, to be accessed by the said Nodal
officer, will be created. The Nodal otficer may nominate JC/ADC (TAR), DGPM as alternate

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l/46120/2022

Nodal Officer lor assisting him in his work.

ii. The Nodal Officer will disseminate the information received by him, through official email'
to all Zonal Pr./ Chiel Commissioners with a copy to the concerned Pr. Commissioner/
Commissioner within 02 (Two) working days.

ii. For faster and timely dissemination ol the information a dedicated WhatsApp group will
also be created by the Nodal Officer which will have ADC/JC concerned (who may be
nominated as nodal officer for the Zone) in the Pr./ Chief Commissioner's office, and the
Pr. Commissioners/ Commissioners concerned as its members.

iii. The concerned office/ commissionerale which has arrears pending against the univ
company shall lile its claims timely lor safeguarding and realisation of the government
dues and inform the fact of having filed its claim to the Nodal Officer through the ADC/
JC in the Chief Commissioner's Office (CCO).
iv. The daily exercise to check for any new parties going in to insolvency from the website
www.ibbi.gov.in will also be undertaken by all field formalions for filing timely claims, as
necessary.
v. Correspondences with the Resolution Professional (RP) should be made regarding
finalisation ol the Resolution Plan. Timely verilication should also be done from the
website www.ibbi.gov.in to check if any orders were issued by NCLT with respecl to
resolution, liquidation, and/or withdrawal of application.
Vi. A monthly report of work done in terms of checking the public announcements, liling of
claims, if any, liasoning with CIRP for providing updates on cases would be sent to the
Nodal Otlicer by the ADC/JC in the CCO, in the attached Format.
vii. The Nodal officer will submit a consolidated monthly report to the Board lor the purpose
of review oJ progress/ action taken by the field tormations.

Profor ma for Mont lv BeDort rdino lBBl cla tm s

Name of the Zone-

Opening No. of No. of M.of No. of No. of linal Closing

Balance of intimations claims field claims filed claims filed orders Balance
the claims received during the in the after the issued for (A)+(e)-(D)
filed pertaining to month prescribed expiry of the liquidation,
arrears time limit prescribed resolution
pending in (Out of C) time limit etc. along
the zone (Out of C) with brief
details
(A) c) (c) (c1) (c2) (D) (E)

nh

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