The Allahabad High Court ruled that GST proceedings cannot be validly initiated or continued against a deceased individual without notifying their legal heirs. This decision came in a case where the petitioner, the son and legal heir of a deceased proprietor, challenged the actions of GST authorities. The authorities had cancelled the deceased's GST registration and issued a show cause notice followed by an ex parte demand order for a prior tax period, all without serving notice to the legal heirs. These actions were based on Sections 50 and 73 of the U.P. GST Act and were only uploaded on the GST portal.
The Court addressed the issue of whether GST proceedings can be validly conducted against a deceased person without involving their legal representatives. It clarified that Section 93 of the GST Act pertains only to the liability of legal heirs and does not authorize tax determination against a deceased individual. The Court emphasized that notifying legal heirs is a mandatory requirement for any valid adjudication after a proprietor's death.
Read More: GST - Allahabad High Court: Proceedings under Section 74 unsustainable merely on basis of suspicion of circular trading or non-production of toll plaza receipts, in the absence of any statutory requirement [Order attached]
Consequently, the Court quashed the show cause notice and the demand order, deeming them without jurisdiction. However, it allowed the GST authorities the liberty to initiate fresh proceedings against the legal heir in compliance with the law, should they choose to do so. This decision underscores the importance of due process and the necessity of involving legal heirs in tax proceedings posthumously.
Order Date: 16 December 2025
Parties: Legal heir of the deceased proprietor vs. State of Uttar Pradesh and Others
Facts:
- The petitioner is the son and legal heir of a deceased proprietor whose GST registration stood cancelled after his death.
- Despite being informed about the death, the GST authorities issued a show cause notice and passed an ex parte demand order for a prior tax period.
- Both the notice and order were uploaded only on the GST portal and were never served upon the legal heirs.
- The demand was raised under Sections 50 and 73 of the U.P. GST Act against the deceased person.
Issue:
- Whether GST proceedings, including issuance of show cause notice and passing of adjudication order, can be validly initiated against a deceased person?
Order:
- The High Court held that GST proceedings cannot be initiated or continued against a deceased person without issuing notice to the legal representatives.
- It clarified that Section 93 of the GST Act only deals with liability of legal heirs and does not authorise determination of tax against a dead person.
- The Court observed that issuance of notice to legal heirs is a mandatory pre-condition for any valid adjudication after death of a proprietor.
- Relying on settled precedent, the Court quashed the show cause notice and the consequential demand order as being wholly without jurisdiction.
- Liberty was granted to the GST authorities to initiate fresh proceedings against the legal heir in accordance with law, if so advised.
