The Madras High Court has quashed the notices and GST assessment order passed in the name of deceased persons by the Goods and Service Tax (GST) Department.
The bench of Justice Krishnan Ramasamy has observed that the assessment orders are ex parte orders, and suffers from violation of principles of natural justice and de hors the same, the notices issued to an assessee, who is no more and assessment orders passed based on such notices are void ab initio and liable to be set aside.
Background
The Proprietor of the Firm, viz., Ramasamy Singaravelan had passed away as early as on 07.05.2022. However, all the notices, which culminated in the orders were issued in the name of the deceased person. Hence, the petitioner, viz., S.Sumathi, the wife of the deceased, is not aware of the same and the petitioner came to know about the orders, only when the department intimated through phone call about the initiation of recovery proceedings.
The petitioner contended that the notices issued to a dead person and assessment orders passed based on such notices are void ab initio and liable to be set aside. The petitioner, being the legal heir of the deceased, would file a reply and contest the matter, and hence, sought for appropriate orders.
The deceased, viz., Mr.Ramasamy Singaravelan was an assessee on the files of the respondent under the provisions of Tamil Nadu Goods and Service Tax Act, 2017 and the person died as early as on 07.05.2022, however, the department who was ignorant of the said fact has been continuously issuing notices in the name of the said deceased person and also passed assessment orders and not stopping with that also proceeded to initiate recovery proceedings.
The petitioner came to know about the impugned proceedings only when the same was intimated by the respondent through phone call and on receipt of the recovery notice.
Conclusion
The court, while allowing the appeal, issued various directions.
Firstly, the orders impugned in both Writ Petition dated 26.12.2023 and 28.03.2024 respectively as well as the consequential orders towards initiation of recovery proceedings are set aside.
Secondly, the matters are remitted back to the department for fresh consideration.
Thirdly, the petitioner, viz. S.Sumathi, who is the legally wedded wife of the deceased Ramasamy Singaravelan shall file replies to the DRC-01 Notices (which were issued in the name of the Proprietary concern) within a period of four weeks from the date of receipt of a certified copy of this order.
Fourthly, on receipt of such reply/objection by the petitioner, the respondent shall consider the same and issue a 14 days clear notice by fixing the date of personal hearing to the petitioner and thereafter, pass appropriate orders in accordance with law, after hearing the petitioner in full, as expeditiously as possible.
Can GST Assessment Order be passed against the deceased assessee?
What happens in cases of ex parte assessment orders?
Case Title: Ramasamy Singaravelan (deceased) Versus The Deputy State Tax Officer
Case No.: W.P.Nos.28496 & 28499 of 2024
Date: 25.09.2024
Counsel For Petitioner: R.Hemalatha
Counsel For Respondent: V.Prashanth Kiran
