Court nullifies CGST Notice against deceased, allows fresh proceedings for Service Tax recovery

The High Court nullified and set aside a Demand-cum-Show Cause Notice issued by the CGST authority against a deceased person, ruling that the notice and consequential order were invalid. The Court allowed the CGST authorities to initiate proper proceedings for Service Tax recovery under the Finance Act, 1994. The petitioner, widow of the deceased, was granted relief as the Notice against her late husband was deemed null and void.

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Issues:
1. Validity of Demand-cum-Show Cause Notice issued against a deceased person by the CGST authority.

Analysis:
The petitioner, the widow of the deceased, challenged the actions of the CGST authority in issuing a Demand-cum-Show Cause Notice against her late husband, who had passed away leaving behind a son and a minor daughter. The Notice demanded Service Tax of Rs.14,38,451 for the financial year 2014-15, along with fines and penalties under various sections of the Finance Act, 1994. The petitioner, aggrieved by this action, filed a writ petition before the High Court.

The High Court heard arguments from both parties, where the Standing counsel for CGST acknowledged that the CGST authorities were unaware of the death of the individual in question until the writ petition was filed by the petitioner. The Court noted that since the Demand-cum-Show Cause Notice and the consequential order were issued to a deceased person, they were nullified and set aside by the Court.

The Court directed that the CGST authorities were free to initiate appropriate proceedings under the Finance Act, 1994, following due procedure for the recovery of Service Tax. With this decision, the writ petition was disposed of, providing relief to the petitioner in the matter of the Notice issued against her deceased husband.

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