Smt. Usha Gupta Vs Commissioner of CGST (Delhi High Court)
Delhi High Court held that issuance of Show Cause Notice under Section 74 of the Central Goods and Services Tax Act, 2017 to the deceased taxpayer is invalid and hence liable to be set aside.
Facts- The petitioner has filed the present petition, inter alia, impugning a Show Cause Notice dated 01.08.2024 issued under Section 74 of the Central Goods and Services Tax Act, 2017 to M/s S.K. Gupta & Co., the sole proprietorship concern of one Mr Surender Kumar Gupta. Notably, it is alleged that SCN has been issued to a person who was a deceased taxpayer.
Conclusion- Undeniably, in a case where the person is liable to pay tax, interest and/or penalty, has expired and the business is carried on by the taxpayer’s legal representative or any other person after his demise, the said legal representative or such other person is liable to pay the due, interest or penalty as payable by the deceased taxpayer. However, the show cause notice for recovery of any such amount is required to be issued to the legal representative or such other person, who is carrying on the business of the deceased taxpayer.
