Professional Update
(Goods and Service Tax Case laws)
D.B. Civil Writ 11634/2024 (Del HC)
Usha Gupta Wife of Lt. Sh. Surinder Kumar Gupta.
vs
Commissioner of CGST, Delhi South Commissionerate & Anr.
Ratio Decidendi
The show cause notice u/s 74 of the CGST cannot be issued in the name of the deceased person. The SCN can be issued in the name of the legal heir and recovery of the tax can be made from legal heir as per section 93 of the CGST act.
Facts
Petitioner impugns order u/s 74 of the CGST Act dated 01.08.2024 of the CGST Act. The sole proprietorship concerns is one of the Sh. Surender kumar Gupta. The sole proprietor is deceased now. The SCN is being issued in the name of the deceased for the purpose of collecting the tax.
Issue
Whether the proper officer issue SCN u/s 74 in the name of the deceased person ?
Held.
Delhi High Court has held that impugned SCN has not been issued to the legal representative of the deceased taxpayer but to the deceased taxpayer.
In Unnikrishnan R & Ors v. Union of India & Ors : 2024 (7) TMI 606 the Madras High Court has held as under:- “The order that has been passed against the dead person is non-est in law. If the petitioner is carrying on the business of the deceased person, then, the remedy is available to the Department to proceed against the petitioner under Section 93 of the TNGST Act, 2017. It appears to be that the petitioner is not carrying on the business of the deceased person.”
In view of the above, the impugned SCN is set aside
In view of the above, the present petition is allowed. The impugned order is set aside. The petitioner may file a reply to the SCN along with all relevant documents relied upon by her within a period of two weeks from date. The adjudicating authority shall consider the same and pass an appropriate order after affording the petitioner an opportunity to be heard
The high court remanded the issue back to the GST authority for providing a fresh SCN for proposing to cancel the GST registration with retrospective effect.
High court sets aside the impugned order and the order to pass a fresh Show cause notice after providing an opportunity of being heard to the petitioner.
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CA Manoj Garg
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