Assessment Proceedings Against Deceased Person Invalid Without Notice To Legal Heirs U/S 93 Of CGST Act: Kerala High Court

Justice Ziyad Rahman A.A. addressed the issue where the wife of the deceased, challenged the GST DRC-07 summary order issued in the name of her deceased husband.

The wife/petitioner has challenged the orders on the ground that, as the proceedings of assessment were commenced and completed against a dead person.

Section 93 of the CGST Act provides for liability in case of death of a person or dissolution of an entity and it provides for the person(s) liable to pay tax, interest or penalty under the GST Act(s) in such cases.

The petitioner is the wife of one Hareesh Kumar who was a dealer for the proprietorship concern by name “Ruby Steels”. The said Hareesh Kumar passed away on 21.01.2024 and consequently the business was closed down.

After the death of the said Hareesh Kumar, a show cause notice was served in the name of Sri Hareesh Kumar, to which reply was sent by the petitioner to the Additional Commissioner/3rd respondent, intimating about his death and also that of the closing down of the business with effect from April, 2023.

However, as per reply, the Additional Commissioner completed the proceedings based on the said show-cause notice issued in the name of the deceased person. GST DRC-07 summary order was issued in the name of deceased Hareesh Kumar.

The department submitted that in the light of the statutory stipulations contained in Section 93 of the CGST Act, it is lawful to continue the proceedings and the legal representative of the deceased person would be liable to pay, out of the estate of the deceased, to the extent to which the estate is capable of meeting the charge, the, interest or penalty due from such person under the Act.

The bench opined that even though liability of the legal representative of the deceased taxable person may continue by virtue of Section 93, the same can be finalized only after issuing notice to such legal representatives.

In view of the above, the bench directed the department to complete the proceedings after issuing notice to the petitioner and other legal representatives.

Case Title: Geetha K.K v. Assistant Commissioner

Case Number: WP(C) NO.9318 OF 2025

Counsel for Petitioner/ Assessee: Ammu Charles, K. Srikumar and K. Manoj Chandran

Counsel for Respondent/ Department: Jasmin M.M and V. Girishkumar

Click Here To Read/Download The Order