Facts of the Case

The petitioner, Vidya Gupta, wife of the deceased Jagdish Prasad — proprietor of M/s Avon Steel — challenged an order dated 07.08.2024 passed under Section 73 of the GST Act, 2017, raising a demand of Rs. 20,54,310/- in the name of her deceased husband. Jagdish Prasad had died on 27.04.2021, and the firm's GST registration was cancelled with effect from 18.08.2021. Despite this, a show cause notice dated 19.05.2024 was issued in the name of the deceased and uploaded on the portal; since there was no occasion for anyone to access the portal on his behalf, the notice went unanswered, culminating in the impugned demand order still in the deceased's name.

Issues Involved

  1. Whether a show cause notice and consequent tax determination can validly be issued and made in the name of a person who had already died before the notice was issued.
  2. Whether Section 93 of the GST Act, dealing with liability of legal representatives, authorises determination against a deceased person without notice to the legal representative.

Petitioner's Arguments

  • The Department was well aware that Jagdish Prasad had died and that the firm's registration had already been cancelled; there was no occasion to pass an order in the name of the deceased.
  • Since the proceedings were conducted in the name of a dead person, they were void ab initio and the order deserved to be quashed and set aside.

Respondent's Arguments

  • The State relied on Section 93 of the GST Act, submitting that recovery can be made from the legal representative even after determination has been made following the death of the proprietor.

Court Order / Findings

  • The Court examined Section 93, holding that it deals only with the liability to pay tax, interest, or penalty where the business is continued or discontinued after death — it does not authorise a determination to be made against a dead person and recovery thereof from the legal representative.
  • Since Section 93 fastens liability on the legal representative, it is sine qua non that the legal representative must be issued a show cause notice, and only after seeking a response from the legal representative can determination take place.
  • As the show cause notice and determination in this case were both made against the dead person without any notice to the legal representative, the proceedings could not be sustained.
  • The order dated 07.08.2024 was quashed and set aside, with the respondents left free to take appropriate proceedings in accordance with law (i.e., against the legal representative, after due notice).

Important Clarification

  • Section 93 of the GST Act fixes liability on legal representatives for tax dues of a deceased person but does not permit adjudication to be conducted in the name of, or against, the deceased person himself.
  • Before any tax determination affecting a deceased taxpayer's dues can be enforced, the Proper Officer must issue a show cause notice to, and hear, the legal representative — proceeding solely against the dead person's name is void ab initio.
  • Cancellation of a firm's registration on account of the proprietor's death does not by itself bar the Department from proceeding, but any such proceeding must be correctly addressed to the legal representative.

Sections Involved

  • Section 93, CGST Act, 2017 — special provisions on liability of legal representatives for tax, interest, or penalty of a deceased person.
  • Section 73, CGST Act, 2017 — determination of tax not paid/short paid, under which the impugned order was passed.

Decision – In Favour of

Assessee (legal heir). The order against the deceased was quashed, with liberty to the Department to proceed afresh against the legal representative after due notice.

Case Details

Court: High Court of Judicature at Allahabad
Case No.: Writ Tax No. 5067 of 2025
Coram: Hon'ble Shekhar B. Saraf, J. and Hon'ble Arun Kumar, J.
Date of Order: 26.09.2025

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