Notice to legal representative is essential when proceedings continue after a sole proprietor's death

An order passed against a sole proprietorship after the proprietor's death was held unsustainable because the department had been informed of the death but failed to serve notice on the legal representative. Effective notice and an opportunity of hearing were required before further proceedings could continue against the representative. The absence of such service vitiated the order, which was therefore set aside and the matter remitted for fresh decision after hearing the petitioner or her representative.

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Issues: Whether the impugned order could be sustained when the assessee was a sole proprietorship, the proprietor had died before the proceedings, and notice was not served on the legal representative.

Analysis: The proceedings were founded on a demand-cum-show-cause notice and culminated in an order passed after the death of the sole proprietor. The record showed that the department was informed of the death, yet the impugned order did not establish service of notice on the petitioner in her capacity as legal representative. In such circumstances, before proceeding further, notice and an effective opportunity of hearing were required to be afforded to the legal representative. The absence of such service vitiated the order.

Conclusion: The impugned order was unsustainable and was set aside. The matter was remitted for fresh decision after giving the petitioner or her representative an opportunity of hearing.

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