Madras High Court quashes GST Recovery Proceedings against Deceased Person, Rules Assessment Orders and Notices Void Ab-initio [Read Order]

The court stated that the GST orders were ex parte and in violation of natural justice principles
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The Madras High Court has quashed the Goods and Services Tax ( GST ) recovery proceedings and GST orders initiated against a deceased individual, Ramasamy Singaravelan. The court ruled that the GST assessment orders and notices are void-ab initio. 

The petitions were filed by his wife, S. Sumathi, who challenged orders dated December 26, 2023, for the tax period 2017-18, and March 28, 2024, for the tax period 2022-23. Despite Mr. Singaravelan’s death on May 7, 2022, the Tamil Nadu GST authorities continued to issue notices and pass assessment orders in his name, which led to recovery actions. Ms. Sumathi became aware of these actions only after being informed by the authorities through a phone call.

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Her counsel, Mrs.R.Hemalatha, argued that issuing notices and passing assessment orders against a deceased person is legally unsustainable and a violation of the principles of natural justice, rendering the orders void from the outset. The counsel further contended that the petitioner, being the legal heir, should be allowed to file a reply and contest the matter.

Justice Krishnan Ramasamy observed that the GST authorities, unaware of Mr. Singaravelan’s death, had wrongfully issued the notices and proceeded with recovery actions. He stated that the orders were ex parte and in violation of natural justice principles. The court held that the notices and assessment orders were void ab initio, as they were addressed to a person who had passed away.

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The court set aside the impugned orders and the recovery proceedings. It remitted the matter back to the GST authorities for fresh consideration, allowing the petitioner to file replies to the notices within four weeks.

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