TaxTMI 
TaxTMI 
2026 (11) TMI 38
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.... 03.11.2020, explaining that the mismatch occurred because the suppliers had reported the supplies as B2C instead of B2B, with the result that the invoices did not appear in the recipient's GSTR-2A. He further specifically asserted that the purchases were genuine, invoices were available and the tax relating to the purchases had been paid to the Government by the suppliers. He also places reliance on the judgement of this Tribunal in the case of Vijayan Sahadevan vs Commissioner of Kerala GST cited in 2026 (8) TMI 1362 - GSTAT THIRUVANANTHAPURAM. He also submitted a death certificate of the proprietor. The business was discontinued after his death and the GST registration was also cancelled w.e.f 1-4-2023. He prays that the appeals may be allowed. 3.0 The Ld AR for the Revenue (State), submits that he has made a detailed pointwise written submission on 7-9-2026. He submits that the Appellant's ground based on Circular No. 183/15/2022-GST is factually misconceived, the Circular being dated 27-12-2022 - subsequent to both the Order-in-Original (27-06-2022) and the impugned Order-in-Appeal (26-11-2022). In any event, the burden to prove eligibility to ITC, including reconci....
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....2 6. Present appeals before Tribunal is filed on 12-6-2026 8.0 We find that on demise of the Proprietor, the Proprietorship Firm also comes to an end. As per the prescribed procedure, the GSTIN 32APNPS6894L1ZX of the deceased appellant was cancelled wef 6-6-2023. Hence, there was no further business conducted in the name of the deceased appellant. The Section 93 (1) of the CGST/KGST Act reads as, 93. Special provisions regarding liability to pay tax, interest or penalty in certain cases. (1) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31 of 2016), where a person, liable to pay tax, interest or penalty under this Act, dies, then-- (a) if a business carried on by the person is continued after his death by his legal representative or any other person, such legal representative or other person, shall be liable to pay tax, interest or penalty due from such person under this Act; and (b) if the business carried on by the person is discontinued, whether before or after his death, his legal representative shall be liable to pay, out of the estate of the deceased, to the extent to which the estate is capable of meet....
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....ellant. Where adjudication fails to examine whether heirs continued the business or whether an estate is available for recovery, the statutory basis for liability remains unaddressed. As such there is no legal proceedings against the Legal Heir or Legal Representative under Section 93, the order of the first appellate authority is unsustainable and the entire proceedings are liable to be set aside. 11.0 We find that our contention is supported by the various settled positions of law as below: (i) In the case of SSS Agro Foods Versus The Assistant Commissioner ST, Kakinada cited in 2026 (8) TMI 899 - AP High Court it is held that the Assessment proceedings cannot validly continue against a deceased proprietor. An assessment issued after death is non est because it is directed at a person incapable of being proceeded against, and the required opportunity of personal hearing is not met. Although Section 93 permits recovery of tax dues from the deceased person's business or estate, fresh assessment proceedings must be initiated against the appropriate legal representative or person carrying on the business after notice and hearing. Any recovery remains limited to the de....
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....mayanti, W/o. Late V. Vasudevan (Proprietor, M/s. Vasu Chemicals) Versus The Superintendent of GST and Central Excise, Madurai cited in 2026 (6) TMI 1093 - Madras HC it is held that, Section 93 of the CGST Act authorises post-death initiation of assessment and recovery proceedings against a legal heir where the taxable person has died and the business has been discontinued. The provision is read with Sections 73, 74 and 74A to mean that tax, interest or penalty may be determined after death, including by issuing notice after the taxpayer's demise; the term "person chargeable with tax" is not limited to the registered taxable person. Recovery against the legal heir is permissible, but in a discontinued business it is confined to the inherited estate. (vi) In the case of M/s. S.B. Enterprises Versus Directorate General of GST Intelligence cited in 2026 (6) TMI 790 - Jharkhand HC it is held that the proceedings against a deceased sole proprietor require notice to the legal representative before continuation of tax action. An order-in-original passed against a deceased sole proprietor was treated as legally vulnerable and was quashed. The HC held that proceedings against a....
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.... representatives for tax, interest or penalty after the proprietor's death, it does not authorize determination of such liability against a dead person. It is mandatory that any show cause notice and adjudication be directed to the legal representative. As the notice and determination were issued solely against the deceased, the impugned proceedings were declared unsustainable and the petition allowed. (x) In the case of Shubhangi Gupta vs State of UP, cited in 2025 (9) TMI 595 - Allahabad HC it is held that the show cause notice and subsequent order under Section 74 unsustainable because the proceedings were initiated against a deceased person after authorities had been informed of the death and the notices were uploaded without bringing them to the notice of the legal heirs. The Court found proceedings against a deceased person impermissible and that authorities should have proceeded properly against the legal representatives. The SCN and ex parte orders, including the cancellation action, were quashed and set aside; petition allowed. (xi) In the case of Vijayan Sahadevan Vs The Commissioner of Keralam State GST cited in 2026 (8) TMI 1362 - GSTAT, this Tribu....