Abatement on death of sole proprietor ends pending appeals where no legal representative seeks continuation.

Proceedings against a deceased sole proprietor abate if no legal representative or successor-in-interest seeks continuation within the prescribed time under the CESTAT Procedure Rules, 1983, and recovery cannot be pursued against a dead person. On that basis, the assessee's appeal abated after the proprietor's death during pendency, and the Department's appeal arising from the same adjudication was treated as not maintainable. The matter ended without adjudication on the underlying tax demand because both appeals were disposed of following the proprietor's death and the resulting abatement.

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Issues: (i) Whether the assessee's appeal abated on the death of the sole proprietor during pendency; (ii) Whether the Department's appeal could survive after the death of the sole proprietor.

Issue (i): Whether the assessee's appeal abated on the death of the sole proprietor during pendency.

Analysis: Rule 22 of the CESTAT Procedure Rules, 1983 provides that proceedings abate on the death of a party unless continuation is sought by the legal representative or successor-in-interest within the prescribed time. The sole proprietor died during pendency of the appeal and no continuation by a legal representative was pursued. The Tribunal also relied on the principle that recovery proceedings cannot be initiated against a dead person.

Conclusion: The assessee's appeal abated.

Issue (ii): Whether the Department's appeal could survive after the death of the sole proprietor.

Analysis: The Department's appeal arose from the same adjudication against the deceased sole proprietor. In the absence of a surviving appellant and in view of the abatement of the proprietor's appeal, the Department's appeal was treated as not maintainable.

Conclusion: The Department's appeal was not maintainable and was disposed of.

Final Conclusion: The proceedings ended without adjudication on the tax demand, as both appeals were disposed of on account of the proprietor's death and resultant abatement.

Ratio Decidendi: Proceedings against a deceased sole proprietor abate in the absence of timely continuation by legal representatives, and recovery cannot be pursued against a dead person.

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