Recovery Proceedings Against Legal Heirs of Sole Proprietors: Invalidity of Demand Notices Issued Against Deceased Exporters

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....I 334 - DELHI HIGH COURT INTRODUCTION This case deals with the recovery of drawback benefit availed by an exporter along with applicable interest and penalty. The core legal question is whether a demand notice can be issued against a deceased person and if recovery proceedings can continue against their legal heirs. ARGUMENTS PRESENTED The petitioner, wife of the deceased exporter, argued that....

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....t for recovering erroneously availed drawback. Issuing notice to a dead person is a fundamental jurisdictional error, rendering the subsequent proceedings invalid. The court relied on its earlier decisions in Savita Kapila [2020 (7) TMI 441 - DELHI HIGH COURT], which held that a notice issued against a deceased person is null and void unless the legal representative submits to the jurisdiction wi....

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....ainst the deceased exporter. DOCTRINAL ANALYSIS This case reaffirms the legal principle that a demand notice or show cause notice issued against a deceased person is fundamentally flawed and invalid, as it lacks the jurisdictional basis to initiate proceedings. The court emphasized that issuing notice to the correct person is not merely a procedural requirement but a condition precedent for acqu....