2026 (2) TMI 164 - HC - GST

Liability of legal representative under GST: notice must be served on the representative; assessments against deceased invalid

Show cause notices and tax determinations issued to a deceased proprietor were held invalid because statutory liability attaches to the legal ... Liability of legal representative after death - determination against deceased - validity of show cause notice issued to a deceased person - scope and interpretation of Section 93 of the Goods and Services Tax Act, 2017 - HELD THAT:- Undisputed facts are that the show cause notice, reminders and determination of tax have been made after the death of the proprietor of the firm. Once the provision deals with the liability of a legal representative on account of death of the proprietor of the firm, it is sine qua non that the legal representative is issued a show cause notice and after seeking response from the legal representative, the determination should take place. In view thereof, the determination made in the present case wherein the show cause notice was issued and the determination was made against the dead person without issuing notice to the legal representative, cannot be sustained. Writ petition is allowed. Issues: Whether a tax determination and demand under the GST Act can be validly made against a deceased person when the show cause notice and determination were issued after the proprietor's death without issuing notice to the legal representative.Analysis: The Court examined Section 93 of the Goods and Services Tax Act, 2017, which addresses liability to pay tax, interest or penalty where a person liable dies and provides for liability of the legal representative when the business is continued or discontinued. The provision addresses the liability of the legal representative and recovery from the estate but does not itself authorize making the determination against a person who is already deceased. Where liability is to be enforced against a legal representative, procedural steps require that the legal representative be given notice and an opportunity to respond before determination and recovery proceedings are concluded.Conclusion: The determination and demand issued and passed in the name of the deceased without issuing notice to the legal representative are unsustainable; the impugned order is quashed and set aside and the respondents may proceed in accordance with law by issuing appropriate notice to the legal representative.