Indirect Taxes do not Supersede Orders in CIRP: Andhra Pradesh HC quashes Demand Orders Against Patanjali

The Andhra Pradesh High Court ruled that indirect tax demands cannot override orders passed during the Corporate Insolvency Resolution Process (CIRP). The court quashed a GST demand against Patanjali, reaffirming that once a company enters CIRP, any pending tax claims must follow the Insolvency and Bankruptcy Code's (IBC) stipulations. This ruling strengthens the legal framework around corporate restructuring by clarifying that creditors, including tax authorities, must adhere to the CIRP process and not pursue independent actions. The judgment provides relief to distressed companies, ensuring a more streamlined resolution process.