P.B. Sethi Plastics Vs State of U.P (Allahabad High Court)
The Allahabad High Court decided a writ petition challenging orders passed under Section 73 of the U.P. Goods and Services Tax Act, 2017/Central Goods and Services Tax Act, 2017 and the subsequent appellate order dismissing the appeal as time-barred.
The case concerned a sole proprietorship firm, P.B. Sethi Plastics, registered under U.P. GSTIN No. 09ACEPS78501ZB. The sole proprietor, Buldeo Raj Sethi, expired on 21.07.2020. After his death, an application was filed for cancellation of GST registration, and an order cancelling the registration was passed on 07.10.2020.
Subsequently, a show cause notice dated 21.09.2023 was issued under Section 73 of the Act, and an order dated 20.12.2023 was passed by the Deputy Commissioner, State Tax, Kanpur, against the firm. An appeal filed by the legal heir before the Additional Commissioner (Appeals) was rejected on 26.06.2025 as barred by limitation.
The writ petitioner, being the legal heir, contended that proceedings under Section 73 could not have been initiated against a deceased person. It was argued that since the sole proprietor had died in July 2020 and the GST registration had already been cancelled, it was not humanly possible for the legal heir to have knowledge of proceedings initiated against the deceased. The petitioner asserted that knowledge of the order dated 20.12.2023 was first obtained on 10.03.2025, and the appeal was filed on 10.06.2025. It was further submitted that proceedings should have been initiated against the legal heirs and not against the deceased proprietor. Reliance was placed on the Division Bench judgment in Amit Kumar Sethia v. State of U.P., which considered Section 93 of the Act.
