Assessment against deceased proprietor cannot stand where no hearing was given to the successor proprietor.

An ex parte assessment under the CGST Act could not be sustained where the proprietor had died before the show cause notice was issued, registration had already been cancelled, and no hearing was given to the successor proprietor. The court treated the proceedings as having been taken against a dead person and held that the defect was fatal. The assessment order was set aside, and the authorities were permitted to issue a fresh show cause notice to the successor proprietor and proceed in accordance with law.

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Issues: Whether an ex parte assessment order passed under Section 74 of the Central Goods and Services Tax Act, 2017 against a deceased proprietor, after cancellation of registration and without affording hearing to the successor proprietor, could be sustained.

Analysis: The proprietor had died before issuance of the show cause notice, and the subsequent reminders were issued after the effective cancellation of registration. In such circumstances, the assessment was effectively made against a dead person and could not stand. As the petitioner had succeeded to the firm as heir and proprietor and sought an opportunity to contest the proceedings, the defect required the order to be set aside and the matter to be taken up afresh.

Conclusion: The assessment order was unsustainable and was set aside, with liberty to the authorities to issue a fresh show cause notice to the successor proprietor and proceed in accordance with law.

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