[Breaking]: IBC to prevail over Customs Act, rules CJI Ramana led SC Bench

  

In a significiant verdict on his last working day, the outgoing CJI NV Ramana headed a Bench that has held that Insolvency and Bankruptcy Code (IBC) will prevail over the Customs Act.

The bench also comprising of Justice Hima Kohli and Justice C.T. Ravikumar opined that the customs authority can only determine the quantum of duties and levies but cannot initiate recovery proceedings.

"Once moratorium under IBC is declared, Customs authorities have only limited jurisdiction to assess the quantum and they cannot take steps to recover the dues". the CJI stated.

The Bench opined that after such assessment, customs authorities had the option to approach the adjudicating authority, claiming the customs dues as operational debt under IBC. 

IRP can take steps to secure the property, it added. 

 

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(With input from news agency language)

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