Case Details: Om Prakash Wadhawan vs. State of U.P. (2025) 35 Centax 299 (All.)
Judiciary and Counsel Details
- Shekhar B. Saraf & Prashant Kumar, JJ.
- S/Shri Pushpila Bisht, Amrendra Ashok & Jai Priya Swapnil, for the Petitioner.
Facts of the Case
The petitioner, husband and legal representative of a deceased proprietor, challenged a demand order passed under the GST law wherein the proceedings, including show cause notice and determination of tax liability, had been initiated in the name of the deceased. The deceased was registered under GST, and her registration stood cancelled prior to initiation of the proceedings. Despite the department being aware of her demise, the proper officer issued show cause notice and subsequent reminders through the GST portal in her name. As no reply was filed, an order determining tax liability was passed against the deceased. The petitioner contended that the entire proceedings were void ab initio since the show cause notice was not issued to him as legal representative, thereby violating the mandatory requirement of service and opportunity to respond. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that the determination of tax liability against a dead person was unsustainable in law. It observed that Section 93 of the CGST Act and the Uttar Pradesh GST Act governed the liability of a legal representative for tax dues of a deceased person but did not authorise assessment or adjudication against the deceased. Since the deceased had passed away before initiation of the proceedings, issuance of show cause notice to the legal representative and granting him an opportunity of hearing were sine qua non for a valid determination. As the show cause notice, reminders, and order were all issued posthumously without service upon the legal representative, the impugned proceedings stood vitiated. The High Court accordingly quashed the impugned order while granting liberty to the respondents to initiate fresh proceedings in accordance with law.
