Excise proceedings against a deceased sole proprietor's legal heir were unsustainable where notice was issued only after death.

Excise proceedings could not be maintained against the legal heir of a deceased sole proprietor where the show cause notice was issued after the proprietor's death and the proprietary concern had already ceased to exist. The tribunal noted that, in the absence of any provision in the Central Excise Act or the Rules authorising such action against the legal heir, the demand and penalty could not survive. Revenue authorities' reliance on cases involving assessments made during the proprietor's lifetime was distinguished because those matters concerned later recovery from legal representatives, not initiation of proceedings after death.

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Issues: Whether excise proceedings and demand could be maintained against the legal heir of a deceased sole proprietor when the show cause notice was issued after the proprietor's death and the proprietary concern had ceased to exist.

Analysis: The demand and penalty were raised against a sole proprietary concern after the proprietor had died. The Court noted that the notice was issued after the death of the proprietor and that the proprietary concern had therefore ceased to exist. It held that, in the absence of any provision in the Central Excise Act or the Rules authorising such proceedings against the legal heir of a deceased sole proprietor, the proceedings could not be sustained. The decisions relied upon by the revenue were distinguished because in those cases the assessment orders had been passed during the proprietor's lifetime and only recovery was pursued later from the legal representatives.

Conclusion: The proceedings were not maintainable against the appellant as legal heir, and the impugned order was set aside.

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