CESTAT Abates Customs Appeals as Sole Appellant Dies, Invokes ‘No Taxation of the Dead’ Principle [Read Order]

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in Chennai has abated two customs appeals following the death of the sole appellant, Smt. Chand Kavar Bhandari. The tribunal cited the legal principle that no proceedings can continue against a deceased person, invoking the Supreme Court's ruling that "taxing the dead" violates natural justice.

Chand Kavar Bhandari, the proprietrix of B.M. Shah Corporation had filed the appeals challenging an order passed by the Commissioner of Customs in 2013. However, during the pendency of the proceedings, she passed away on February 1, 2018, at the age of 83. Her death certificate, issued by the Greater Chennai Corporation, was submitted before the tribunal by her advocate, Shri R. Ramkumar.

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The bench ruled that the appeals automatically abated under Rule 22 of the CESTAT (Procedure) Rules, 1982. This rule states that legal proceedings shall abate upon the death of an appellant unless a successor-in-interest or legal representative applies to continue the case within 60 days. In this instance, no such application was filed.

The tribunal reinforced its decision by referring to the Supreme Court's judgment in the Shabina Abraham case (2015), where it was held that continuing proceedings against a deceased person amounts to a violation of natural justice, as the dead cannot defend themselves. The Supreme Court had famously remarked, "Tax laws are made by the living to tax the living," emphasizing that legal actions cannot persist against someone who is no longer alive.

Since the appeals were filed solely by Chand Kavar Bhandari, her death led to the abatement of both her appeal and the connected departmental appeal. The tribunal disposed of the matters, closing the case without any further adjudication.

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Judicial Member P. Dinesha and Technical Member M. Ajit Kumar pronounced the order in open court, upholding the principle that legal proceedings cannot outlive the appellant. The decision reaffirms the settled legal position that taxation and litigation end with the life of the individual concerned.

To Read the full text of the Order CLICK HERE

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