Recovery proceedings allowed against deceased's legal representatives; orders dated Dec 22, 2023, and July 30, 2024, set aside

ISSUES:

Whether an order demanding tax liability can be validly issued against a deceased person.Whether the respondents are entitled to proceed against the legal representatives of a deceased person under Section 93 of the Central Goods and Services Tax Act, 2017 (CGST Act).What procedural safeguards and timelines apply to issuance and disposal of show cause notices against legal representatives under the CGST Act.Whether the legal representatives can be restrained from dealing with the deceased's immovable property pending disposal of the show cause notice.

RULINGS / HOLDINGS:

The impugned order demanding Rs. 80,62,516/- against the deceased person is a nullity and must be set aside as it was made against a dead person.Under Section 93 of the CGST Act, the respondents are entitled to proceed against the legal representatives of the deceased person for recovery of dues.The respondents shall issue a show cause notice to the disclosed legal representatives within four weeks and dispose of the same within six months from service, adhering to the principles of natural justice.The legal representatives are restrained from selling, transferring, or otherwise dealing with the immovable properties of the deceased until the show cause notice is disposed of.

RATIONALE:

The Court applied Section 93 of the Central Goods and Services Tax Act, 2017, which provides for proceeding against legal representatives of a deceased person for recovery of tax dues.The principle that an order against a dead person is a nullity was reaffirmed, necessitating issuance of fresh proceedings against legal representatives.The Court mandated strict timelines and observance of natural justice in the issuance and disposal of show cause notices to protect the rights of legal representatives.The interim restraint on dealing with immovable property ensures preservation of assets pending adjudication, preventing potential dissipation of assets subject to tax recovery.No dissent or doctrinal shift was indicated; the Court left all other contentions open for determination in the proceedings against the legal representatives.