V. Damayanti Vs Superintendent of GST And Central Excise (Madras High Court)
Madras HC Allows Fresh GST Proceedings Against Legal Heirs as Section 93 Permits Post-Death Assessment; Madras HC Upholds GST Assessment Against Legal Heirs Because Liability Can Be Determined After Death; Madras HC Holds ‘Person Chargeable With Tax’ Includes Legal Heirs Because Statute Imposes Liability; Madras HC Rejects Challenge to GST Demand Because Section 93 Covers Post-Death Determination; Madras HC Says Fresh GST Assessment Can Begin After Taxpayer’s Death Because Section 93 Is Explicit
The Madras High Court considered whether assessment proceedings under the CGST Act can be initiated for the first time against the legal heirs of a deceased taxable person when the business has been discontinued and no proceedings were initiated during the lifetime of the deceased. The writ petition challenged an order passed under Section 74 of the Central Goods and Services Tax Act, 2017.
The petitioner’s husband was the proprietor of a GST-registered business engaged in supplying industrial soaps and polishes. He died on 5 March 2019, following which the business was discontinued and the GST registration was cancelled with effect from 31 December 2019. In 2025, the petitioner received communications alleging non-filing of returns in respect of certain e-way bills for the financial year 2018-19. She replied that she had neither continued the business nor was aware of its affairs after her husband’s death. Despite her replies, the authorities passed an order determining tax liability of ₹3,42,355, along with interest and penalty, leading to the filing of the writ petition.
