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AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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Issues: Whether, under Section 93 of the Central Goods and Services Tax Act, 2017, fresh assessment and recovery proceedings can be initiated against the legal heir of a deceased taxable person after the business has been discontinued, even where no notice or proceedings were initiated during the deceased's lifetime.
Analysis: Section 93 expressly contemplates liability of the legal representative where the business is discontinued, and it also covers situations where tax, interest or penalty is determined after the death of the taxable person. The expression "person chargeable with tax" in Section 74 is not confined to the registered taxable person; it extends to any person on whom the Act fastens the liability to pay, including a legal heir from whom recovery is statutorily authorised. Reading Section 93 in conjunction with Sections 73, 74 and 74A, the words "determined after his death" include the entire adjudicatory process, including issuance of notice and determination. The statutory text is to be given its plain meaning and cannot be restricted by importing a limitation that the legislature did not express.
Conclusion: Fresh proceedings may be initiated against the legal heir after the death of the taxable person, notwithstanding that no proceedings were commenced during the deceased's lifetime; however, in the case of a discontinued business, recovery is limited to the extent of the estate inherited.
Final Conclusion: The challenge to the reassessment proceedings failed, and the writ petition was dismissed because Section 93 authorises post-death initiation and recovery against the legal heir within the statutory limits.
Ratio Decidendi: Where the charging and recovery provisions of the GST law expressly extend liability to legal heirs, the entire adjudicatory process may be commenced after the taxable person's death, subject to recovery being confined to the inherited estate in cases of discontinued business.
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