Show Cause Notice Under Section 93 GST Cannot Be Issued to Deceased Without Notifying Legal Representative

The HC held that issuance of a show cause notice (SCN) and determination of liability under Section 93 of the GST Act cannot be made against a deceased person without issuing notice to the legal representative. Since the proprietor had died and the firm's registration was cancelled, the SCN issued to the deceased was invalid. The provision mandates notice and opportunity to the legal representative before determination and recovery. Consequently, the order passed without notice to the legal representative was quashed and set aside, and the petition was allowed.

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ISSUES:

Whether a show cause notice and subsequent determination under Section 73 of the Goods and Services Tax Act, 2017 can be issued and made against a deceased person.Whether the liability to pay tax, interest, or penalty under Section 93 of the Act extends to legal representatives after the death of the proprietor.Whether issuance of show cause notice and determination against a deceased person without notice to the legal representative is valid.

RULINGS / HOLDINGS:

The court held that the provision under Section 93 of the Act "does not authorise the determination to be made against a dead person" and therefore, a show cause notice and determination cannot be validly issued against a deceased person.Section 93 imposes liability on the legal representative only after the business is continued or discontinued post-death, and such liability requires that the legal representative be issued a show cause notice and given an opportunity to respond before determination.The determination made against the deceased without issuing notice to the legal representative is "void ab initio" and "cannot be sustained."

RATIONALE:

The court applied the statutory framework of Section 93 of the Goods and Services Tax Act, 2017, which provides special provisions regarding liability to pay tax, interest, or penalty after the death of a person liable under the Act.The provision distinguishes between continuation and discontinuation of business after death and assigns liability accordingly to the legal representative, but does not contemplate issuance of show cause notices or determination against the deceased person themselves.The court emphasized the procedural requirement that the legal representative must be given notice and an opportunity to respond before any determination is made, reflecting principles of natural justice.No dissent or doctrinal shift was noted; the judgment clarifies the proper procedural approach under the Act in cases involving deceased persons.

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