Order Date – 08 May 2025

Parties: Devendra Kumar Singh (Deceased) through Harsh Vardhan Singh Vs State of U.P. and another

Facts –

• The Petitioner, Devendra Kumar Singh, a registered proprietor under GST, died on 01.05.2021 and his GST registration was cancelled w.e.f. 01.04.2021 via order dated 27.05.2021. 
• Despite this, a show cause notice dated 08.05.2024 and a reminder dated 22.06.2024 were issued in the name of the deceased. As the GST registration was already cancelled, the notice uploaded on the GST portal went unnoticed and remained unanswered.
• Subsequently, a demand order dated 31.07.2024 under Section 73(9) of the CGST Act was passed against the deceased. The deceased’s son, Harsh Vardhan Singh, filed the petition challenging the validity of the proceedings.

Issue –

• Whether a tax demand order can be passed against a deceased person without issuing a show cause notice to the legal representative?

Order –

• The Division Bench of Hon’ble High Court observed that Section 93 of CGST Act does not deal with the fact as to whether the determination at all can take place against a deceased person and the said provision cannot and does not authorise the determination to be made against a dead person and recovery thereof from the legal representative.
• Once the provision deals with the liability of a legal representative on account of death of the proprietor of the firm, it is sine qua non that the legal representative is issued a show cause notice and after seeking response from the legal representative, the determination should take place.
• In view thereof, the determination made in the present case wherein the show cause notice was issued and the determination was made against the dead person without issuing notice to the legal representative, cannot be sustained.
• Hence the writ petition allowed.