In a significant judgment, the Madras High Court quashed a Goods and Services Tax ( GST ) assessment order issued against a deceased individual, on the grounds of being null and void.
The order, passed by Justice Mohammed Shaffiq, emphasized that tax proceedings initiated in the name of a deceased person lack jurisdiction and violate principles of natural justice.
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The petitioner, Mrs. Lakshmi Periyasamy, filed a writ petition challenging the assessment order dated June 1, 2022, issued for the financial year 2020-2021. She argued that her husband, Mr. Periyasamy, passed away on November 17, 2020, and that the impugned order was issued posthumously. Citing prior judgments, including the case of R. Unnikrishnan v. Union of India, the court reaffirmed that assessment orders issued against deceased individuals are non est in law.
The court acknowledged the respondent’s contention that the order could be appealed, but deemed the matter suitable for intervention under Article 226 of the Constitution, given the jurisdictional flaw. It granted liberty to the GST authorities to issue a fresh notice to the legal heirs within 30 days, ensuring compliance with legal procedures.
The learned Government Advocate for the respondents submitted that the order is an appealable order and this writ petition ought not to be entertained.
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The Court, conscious of the fact that normally jurisdiction under Article 226 would not be entertained when there is an alternate remedy, however the same is not an absolute bar but is a self imposed restriction and has exceptions carved out to the above rule, one such exception is where the order is without jurisdiction.
The assessment made in the name of a dead person has been held to be a nullity and would thus fall within the exception to the rule of alternate remedy, it was observed.
The respondents, submitted that they may be granted liberty to issue common notice to the legal heirs of the deceased Periyasamy, within a period of thirty (30) days from the date of receipt of a copy of this order and thereafter, proceed in the manner known to law.
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The Madras High Court thus invalidated the Goods and Services Tax ( GST ) assessment order against a deceased individual, emphasizing jurisdictional flaws and ensuring compliance with legal procedures for legal heirs.
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