GST Proceedings Cannot Be Initiated Against An Entity That Has Ceased To Exist After Amalgamation

BRIEF FACTS OF THE CASE

• Widia India Tooling Private Limited had been amalgamated with the petitioner, i.e. M/s. Kennametal India Ltd, pursuant to an approved Scheme of Amalgamation and consequently ceased to exist as a separate legal entity.
• Despite this, a show cause notice and the consequent adjudication order were issued in the name of Widia India Tooling Pvt. Ltd., an entity no longer in existence.
• Accordingly, the petitioner invoked the writ jurisdiction of the Hon'ble High Court of Karnataka seeking quashing of the impugned notice and order issued against the amalgamating company.

JUDGMENT AND CONCLUSIONS DRAWN BY THE HIGH COURT

• The High Court held that no proceedings could be initiated against a company that has merged or amalgamated with another company for a simple reason that the earlier company that has been amalgamated has lost its legal character and does not exist as a legal entity.