Ushaben Kalpeshbhai Vs State Tax Officer (Gujarat High Court)
Summary: The Gujarat High Court allowed the writ petition filed by Ushaben Kalpeshbhai Patni, wife and legal heir of deceased Kalpeshbhai Ramubhai Patni, challenging GST proceedings initiated in the name of her deceased husband. The petitioner sought quashing of the notice dated 02.07.2024 issued under Section 73 of the Gujarat Goods and Services Tax Act, 2017 (GGST Act), together with the consequential demand order dated 01.02.2025.
Late Kalpeshbhai Ramubhai Patni was engaged in trading various goods under the name and style of Shivam Trading Co. He died on 03.05.2021 due to Covid-19 at the age of 37 years. The registration of the proprietorship was subsequently cancelled on 16.07.2021, with nil demand being assessed on account of failure to file GST returns continuously for six months. According to the petitioner, the business was not continued after her husband’s death. She was a housewife, was not connected with the business and was unable to locate the records relating to the deceased’s business.
On 14.06.2024, nearly three years after the death of the proprietor and after cancellation of the registration, the respondent issued a pre-show cause notice intimation under Section 73(5) of the GGST Act in FORM DRC-01A in the name of the deceased proprietor. The proposed tax liability was Rs.28,49,906/- along with interest and penalty for F.Y. 2020-21. The petitioner stated that the intimation was uploaded only on the GSTN portal after the taxpayer’s death and therefore she was unaware of it and could not respond.
