HC Quashes Demand Against Deceased Assessee as Nullity

Case Details: Sikha Borgohain vs. Union of India - [2025] 177 taxmann.com 463 (Gauhati)

Judiciary and Counsel Details

• Sanjay Kumar Medhi, J.
• P Bordoloi & Ms M Nirola, Advs. for the Petitioner
• S Chetia, Learned counsel for the Respondent

Facts of the Case

The petitioner, being the daughter and legal heir of a deceased assessee, was issued a show cause notice under section 73(1) of the CGST Act read with the Assam GST Act in respect of a tax period subsequent to the death of her father. The notice and subsequent proceedings were directed against the deceased assessee, although the petitioner had intimated the authorities regarding the demise and requested time to respond. No reply was ultimately submitted, and an order was passed imposing tax, interest, and penalty in the name of the deceased assessee. The petitioner challenged the validity of such proceedings before the High Court on the ground that the initiation of proceedings against a dead person was without jurisdiction and void in law. The matter was accordingly placed before the Gauhati High Court.

High Court Held

The Gauhati High Court held that the proceedings initiated against a dead person were a nullity in law and therefore the show cause notice and consequential order passed in the name of the deceased assessee were liable to be set aside and quashed. The Court observed that liability under section 73 of the CGST Act and the Assam GST Act may extend to legal representatives, but valid proceedings can only be initiated by issuance of notice in their names. It was clarified that while the impugned proceedings could not be sustained, the authorities were at liberty to initiate fresh action by issuing a show cause notice against the legal representatives in accordance with law.