Madras High Court sets aside GST Order against deceased person, Grants Heir Fresh Hearing Conditionally [Read Order]

In a recent ruling, the Madras High Court set aside the Goods and Services Tax ( GST ) order issued against the deceased person by the State Tax Officer. On condition, the tribunal granted the legal heir a fresh opportunity to present the case.

S.R. Steels was represented by its legal heir, Anandbabu after his wife's passing, the firm's original proprietor. The petition was filed to challenge an order dated 07.02.2024 by the Deputy State Tax Officer. The impugned order was issued against the deceased proprietor, who passed away on 21.11.2019.

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The petitioner’s counsel submitted that the impugned order was issued against the petitioner’s wife after her death, rendering the order invalid. The counsel prayed to give an opportunity to present the assessee’s matter as the legal heir and requested the bank account to be de-frozen.

The Special Government Pleader representing the respondent, G.Nanmaran agreed that the petitioner as the legal heir should be allowed to present the case. The respondent’s counsel requested that the matter be remanded to allow the petitioner to file a reply, conditional upon paying 10% of the disputed tax amount.

Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here

A single bench led by Justice Krishnan Ramasamy observed that the impugned order was issued to a deceased person, making it liable to be set aside. Given that the petitioner was the legal heir, the court deemed it just and necessary to provide the petitioner an opportunity to present the case.

The court ruled that the impugned order dated 07.02.2024 was set aside, and the matter was remanded for fresh consideration, conditional upon the petitioner paying 10% of the disputed tax amount within four weeks.

Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here

The court instructed the petitioner to file his objections and supporting documents within two weeks of receiving the order. The court directed the respondent to consider the petitioner’s reply and provide 14 days' clear notice for a personal hearing before passing a new order.

The court lifted the attachment on the petitioner’s bank account, instructing the bank to release the freeze upon proof of payment of the 10% tax amount.

The writ petition of the petitioner was disposed of with no costs, and the connected miscellaneous petitions were also closed.

To Read the full text of the Order CLICK HERE

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