Table of Contents
- Assessment On A Deceased Person Is Void: High Courts Reiterate Limits Of Gst Jurisdiction
- Case 1: Proceedings Against Deceased Proprietor – Assessment Quashed
- Case 2: Gst Proceedings Against Deceased Proprietor Quashed; Portal Notices Held Invalid
- Verdict- Gst Proceedings Against Deceased Proprietor Quashed; Portal Notices Held Invalid
- Unified Legal Principles Emerging From These Decisions
- Unified One‑line Principle From Both Judgments:
Assessment on a Deceased Person Is Void: High Courts Reiterate Limits of GST Jurisdiction
Case 1: Proceedings Against Deceased Proprietor – Assessment Quashed
Facts of the Case
- Late B. Kameswara Rao was a registered person under GST, carrying on business as M/s Aravinda Enterprises. He passed away on 21.12.2021. The business was discontinued on 20.02.2023, and GST registration was formally closed on 21.04.2023. Despite this, the GST department: Issued a Show Cause Notice dated 16.08.2023 and Passed an Order-in-Original dated 25.01.2024, for the period July 2017 to March 2018, raising tax, interest, and reverse charge liability.
- The son and legal heir challenged the proceedings on the grounds that both the SCN and assessment order were issued in the name of a deceased person.
Core Legal Issue
Can assessment and adjudication proceedings under the GST law be validly initiated or continued against a deceased person? And how is Section 93 of the CGST Act to be applied in such cases?
High Court’s Ruling—The Hon’ble High Court held:
- Assessment and adjudication proceedings against a deceased person are legally unsustainable and void ab initio. A show cause notice or order issued in the name of a dead person suffers from a jurisdictional defect, not a curable procedural irregularity. Section 93 of the CGST Act:
- Deals only with recovery of tax dues from the legal representative or estate of the deceased.
- Does not authorize initiation or continuation of assessment proceedings against a dead person.
High Court’s Direction
- The impugned SCN and Order-in-Original were set aside. Liberty was granted to the department to initiate fresh proceedings against the legal heir, strictly in accordance with law. Key Legal Takeaways by High Court’s
- Assessment ≠ Recovery: Section 93 applies only at the recovery stage, not assessment or adjudication.
- Death snaps jurisdiction: Proceedings must shift to legal heirs explicitly and lawfully.
- Void, not irregular: Such orders are nullities and cannot be cured by substitution later.
- Due process mandatory: Fresh notice must be issued to legal heirs before fastening liability.
Practical Impact- Assessment on a Deceased Person Is Void: High Court Orders Fresh GST Proceedings Against Legal Heir
- GST departments must verify status of taxpayers before issuing SCNs or orders. Legal heirs should challenge notices/orders issued in the name of deceased persons immediately. Registration cancellation does not validate illegal assessments post death.
- Tax liability may survive death, but jurisdiction does not. Assessment proceedings must follow the living person against whom they are initiated.
Case 2: GST Proceedings Against Deceased Proprietor Quashed; Portal Notices Held Invalid
Issue :
- Whether Goods and services Tax proceedings (Show Cause Notice and assessment order) initiated against a deceased sole proprietor are valid when the department had prior knowledge of death, The Goods and services Tax registration stood cancelled, & GST Notices were only uploaded on the Goods and Services Tax portal without personal service on legal heirs. (Case Reference: High Court of Allahabad Ashwani Kumar Pandey v. State of U.P. WRIT TAX No. 1559 of 2025, Decision dated 16 December 2025)
Facts
- The sole proprietor of M/s Pandey Iron Dealer died on 06 February 2021. Post death, an application for cancellation of Goods and services Tax registration was filed by counsel. The department cancelled the registration on 27 June 2023, explicitly acknowledging the death.
- Despite this: Show Cause Notice dated 21 May 2024 was issued, and Ex parte assessment order dated 21 August 2024 was passed Both in the name of the deceased proprietor.
- Notices and orders were only uploaded on the Goods and Services Tax portal. Legal heirs were never personally served and were unaware of the proceedings.
Petitioner’s Contention
- Proceedings against a dead person are void ab initio. Once death is known and registration is cancelled, the department lacks jurisdiction. Portal upload cannot substitute valid service on legal heirs.
High Court’s Findings
- Proceedings Against a Deceased Person Are Invalid: A deceased person is not a legal entity. Any SCN or order issued in their name is non-est and without jurisdiction.
- Knowledge of Death Is Decisive: The department had actual knowledge of death, evidenced by cancellation of registration. Initiating proceedings thereafter was held to be “bad in law.”
- Portal Upload Is Not Valid Service : Uploading notices on the GST portal does not cure the fundamental defect of proceeding against a non-existent person & cannot bind legal heirs, especially after registration cancellation. And legal heirs cannot be expected to monitor a dead person’s Goods and Services Tax portal indefinitely.
- Section 93 Central Goods and Services Tax (CGST) Act, 2017, Limited Scope, Section 93 governs liability and recovery, not assessment against the deceased. Proper course: bring legal representatives on record and issue fresh notices to them in accordance with law.
Verdict- GST Proceedings Against Deceased Proprietor Quashed; Portal Notices Held Invalid
- Show Cause Notice and assessment order quashed. Liberty granted to the department to initiate fresh proceedings against the legal heir, strictly as per law. Decision in favor of the assessee.
- Void ab initio: Notices/orders against dead persons are nullities. Section 93 ≠ assessment power: It applies only after valid determination. Portal ≠ service I n all cases, especially where registration is cancelled due to death. Due process is mandatory: Legal heirs must be specifically notified and heard.
Unified Legal Principles Emerging from These Decisions
- One-line principle: Tax liability may survive death; jurisdiction does not. The following points come via this decision :
- Void ab initio: Any notice/order issued in the name of a dead person is a nullity.
- Jurisdiction requires a living assessee: tax liability may survive death; jurisdiction does not.
- Portal upload ≠ valid service (post-death), especially once registration is cancelled.
- Due process for legal heirs is mandatory: They must be specifically notified and heard.
Unified One‑Line Principle From Both Judgments:
Tax liability may survive death, but jurisdiction does not. Assessment cannot proceed against a deceased person.
