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of <h1>Legal heirs liable for tax arrears without fresh notice under Section 15</h1> <h3>PONNAPPAN AND OTHERS Versus STATE AND OTHERS</h3> PONNAPPAN AND OTHERS Versus STATE AND OTHERS - [2019] 69 G S.T.R. 253 (Mad) Issues:Challenge to judgment and decree passed in lower courts regarding liability of legal heirs to pay tax arrears and penal interest without fresh notice of demand, Civil Court's jurisdiction to entertain the suit, applicability of Section 51 of Tamil Nadu General Sales Tax Act 1959.Analysis:1. The Second Appeal challenges the judgment confirming the decree passed in lower courts regarding the liability of legal heirs to pay tax arrears and penal interest without a fresh notice of demand. The substantial questions of law include the necessity of notice to legal heirs before penal interest imposition and the application of relevant legal principles.2. The plaintiffs, as legal representatives of the deceased dealer, challenged a notice demanding penal interest for delayed tax payment. The defendants contended that Section 15 of the Tamil Nadu General Sales Tax Act 1959 holds the legal heirs liable for the deceased's tax arrears and penal interest, thus no fresh notice is required.3. The Courts below dismissed the plaintiffs' suit citing lack of jurisdiction under Section 51 of the Act and upheld the liability of legal heirs to pay tax arrears and penal interest without a fresh notice. The judgment relied on legal provisions and precedents to support the decision.4. Section 15 of the Act deems legal representatives liable for tax arrears of the deceased dealer, limiting their liability to the assets of the deceased. The impugned notice demanding penal interest was found valid as the legal heirs had knowledge of and paid the tax arrears without contesting the original notice.5. The Courts correctly held that no fresh notice of demand was necessary for the legal heirs to pay penal interest, as they had already paid the tax arrears following the deceased's assessment order. The suit challenging the notice was deemed not maintainable due to the Act's provisions and the lack of jurisdiction of Civil Courts.6. The judgment emphasized the legal obligations of legal heirs under the Act, barring Civil Courts from interfering with tax assessments. The decision was based on statutory provisions, principles of natural justice, and previous legal interpretations, dismissing the Second Appeal and upholding the lower courts' rulings.
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