Facts of the Case

The petitioner, legal representative of the late Sappani Konar Ramasamy (proprietor, M/s Tvl Sri Kannan Transport), challenged an assessment order dated 26.12.2025 in Form GST DRC-07 for assessment year 2021-22, passed under Section 73. The deceased had applied for and secured cancellation of his GST registration on 07.06.2022, filing his final return on 26.02.2023, and passed away on 02.05.2025 — well before the notice in DRC-01 and the impugned order were issued. The petitioner explained that the deceased, having surrendered registration, had no occasion to monitor the GST portal for the notice, and that the auditor's mistaken filing had led to the erroneous demand despite the business being exempt from tax.

Issues Involved

  1. Whether an assessment order passed against a person after his death, based on a notice issued post-death, can be sustained against the legal heir without fresh notice and opportunity.
  2. Whether bank attachment consequential to such an order should be lifted pending fresh adjudication.

Petitioner's Arguments

  • The assessee had surrendered his GST registration well before his death and had no occasion to check the portal, so both the notice in DRC-01 and the subsequent order, issued after his death, could not bind the legal heir without a fresh opportunity.
  • The business was exempt from tax and there was no scope for wrongly availing or misutilising ITC; the demand arose only due to a mistake by the auditor who filed the returns.

Respondent's Arguments

  • At the time of cancellation of registration, an address for future communication would have been furnished, and the notice in DRC-01 was issued in compliance with that address, so the writ petition did not merit interference.

Court Order / Findings

  • Noting that both the notices and the impugned order were passed after the death of the assessee, the Court found it appropriate to remit the matter back to the respondent without any condition, to pass fresh orders.
  • The Court directed the petitioner to file a reply to the show-cause notice within 30 days, treating the impugned order as an addendum to the notice, with the respondent to pass a final order on merits within three months of such reply, and directed that any bank account attachment automatically stand vacated on the petitioner's compliance, subject to no other tax arrears.
  • The Court clarified that if the petitioner failed to comply, the respondent could proceed to recover tax as though the writ petition had been dismissed in limine.

Important Clarification

  • Notices and assessment orders issued after the death of the registered person, without fresh notice to the legal heir, are liable to be set aside and the matter remitted for a fresh opportunity to reply and be heard, rather than being enforced against the legal representative as they stand.
  • Bank attachment consequential to such a defective order can be directed to be automatically vacated on the legal heir's compliance with the fresh reply/hearing process, subject to no unrelated arrears.

Sections Involved

  • Section 73, CGST Act, 2017 – demand for tax not paid/short paid without fraud/suppression, under which the impugned order was passed.
  • Section 93, CGST Act, 2017 – liability of legal representatives to pay tax dues of a deceased person, relevant background to the dispute.
  • Form GST DRC-01 – show-cause notice issued to the (deceased) assessee.

Decision – In Favour of

The decision is in favour of the assessee (legal heir). The order was remitted without condition, with a fresh opportunity to reply and automatic vacation of bank attachment on compliance.

Case Details

Court: Madurai Bench of the Madras High Court — Case No.: W.P.(MD) No.18723 of 2026 — Coram: Hon'ble Mr. Justice C. Saravanan — Date of Order: 6 July 2026.

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