Penalty liability and duty recovery against legal representatives are limited by death and inherited estate only.
A deceased assessee's penalty liability does not survive as a recoverable claim against the legal representative, so recovery of penalties was treated as unenforceable against the widow prosecuting the matter. Duty recovery against a legal representative is confined to estate inherited by her; where an affidavit stated that no property of the deceased had come into her hands and the position was not disputed, recovery could not be pressed against her. The interim result was waiver of pre-deposit and stay of recovery for both the penalty and duty demands, with the substantive appeal to continue separately.
Issues: (i) Whether the penalties imposed on a deceased appellant could be recovered from the legal representative. (ii) Whether the duty demand could be enforced against the legal representative when no property of the deceased had come to her hands.
Issue (i): Whether the penalties imposed on a deceased appellant could be recovered from the legal representative.
Analysis: The order noted the legal position that a penalty imposed on a person does not survive as a recoverable liability against the legal representative. Relying on the cited authority, the Tribunal treated the penalty demand as not enforceable against the widow prosecuting the appeal after the appellant's death.
Conclusion: The legal representative was entitled to waiver of pre-deposit and stay of recovery in respect of the penalties.
Issue (ii): Whether the duty demand could be enforced against the legal representative when no property of the deceased had come to her hands.
Analysis: The Tribunal considered the affidavit stating that no estate of the deceased had devolved upon the legal representative and noted that no counter was filed to dispute it. On that basis, and taking note of the authorities referred to on recovery of a deceased person's dues from inherited property only, the Tribunal held that recovery could not be pressed against the widow in the absence of estate in her hands.
Conclusion: The legal representative was entitled to waiver of pre-deposit and stay of recovery in respect of the duty amount as well.
Final Conclusion: Interim relief was granted against both penalties and duty recovery, leaving the substantive appeal to proceed separately.
Ratio Decidendi: A deceased assessee's tax penalty is not recoverable from the legal representative, and duty recovery against the legal representative is confined to the extent of estate inherited by her.
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