Facts of the Case

The petitioner, Nitin Sharma, son of deceased Kailash Saran Sharma, proprietor of M/s Imperial Security Services, challenged an order dated 07.02.2025 passed under Section 73(9) of the GST Act, 2017 raising a demand of Rs. 5,23,132 in the name of his deceased father. Kailash Saran Sharma had died on 23.03.2022, following which the firm's GST registration was cancelled effective 15.07.2022 by order dated 05.08.2022. Despite this, a show cause notice dated 19.11.2024 and subsequent reminders were issued in the name of the deceased and uploaded on the portal; since the registration had already been cancelled, the petitioner had no occasion to access the portal, the notice went unanswered, and the impugned demand order followed.

Issues Involved

  1. Whether GST adjudication proceedings and a demand order passed in the name of a deceased proprietor, without notice to his legal representative, are valid.
  2. Whether Section 93 of the GST Act authorises determination of tax liability against a dead person for subsequent recovery from the legal representative.

Petitioner's Arguments

  • Since the Department was well aware that the proprietor had died and the firm's registration had already been cancelled, there was no occasion to issue a show cause notice in the name of the deceased.
  • Proceedings conducted entirely in the name of a deceased person are void ab initio, and the resultant order deserved to be quashed and set aside.

Respondent's Arguments

  • Under Section 93 of the GST Act, recovery of tax, interest or penalty can be made from the legal representatives even where determination is made after the death of the proprietor of the firm, and the impugned order was accordingly supportable.

Court Order / Findings

  • Examining Section 93, the Court held that the provision deals only with the liability of a legal representative to pay tax, interest or penalty due from a deceased person - it does not authorise the determination itself to be made against a dead person; where liability is to be fastened on a legal representative, it is sine qua non that the legal representative be issued a show cause notice and given an opportunity to respond before determination.
  • Since the show cause notice, reminders and determination were all made in the name of the deceased without any notice to the legal representative, the order dated 07.02.2025 could not be sustained.
  • The writ petition was allowed, the order quashed and set aside, with liberty to the respondents to take appropriate proceedings in accordance with law; the petitioner's bank account was directed to be released forthwith.

Important Clarification

  • Section 93 of the CGST/State GST Act fixes liability on a legal representative to pay tax dues of a deceased person, but does not authorise the underlying determination of tax to be made in the name of the deceased - such determination must be made only after issuing a show cause notice to, and hearing, the legal representative.
  • GST proceedings and demand orders passed entirely against a deceased taxpayer, without ever bringing the legal representative on record, are liable to be quashed as void, regardless of Section 93's recovery mechanism.

Sections Involved

  • Section 73, GST Act, 2017 - determination of tax not paid/short paid.
  • Section 93, GST Act, 2017 - special provisions regarding liability to pay tax, interest or penalty where a taxable person dies.

Decision – In Favour of

Decided in favour of the assessee/legal representative; demand order quashed and bank account release directed.

Case Details

  • Court: High Court of Judicature at Allahabad
  • Case No.: Writ Tax No. 4454 of 2025
  • Coram: Justice Shekhar B. Saraf and Justice Praveen Kumar Giri
  • Date: 16th September, 2025

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