Atishay Traders Vs State of U.P. and Another (Allahabad High Court)
Allahabad HC held that the GST Tax determination made in the present case wherein the show cause notice was issued and the determination was made against the dead person without issuing notice to the legal representative, cannot be sustained
Allahabad: The Allahabad High Court has set aside a Goods and Services Tax (GST) demand of ₹50,000 raised against a proprietorship firm in the name of its deceased proprietor. The court held that the entire proceedings, initiated by issuing a show-cause notice and culminating in a demand order against a person who had already passed away, were fundamentally flawed and void from the outset.
The case, titled Atishay Traders Vs State of U.P. and Another, involved a demand order dated March 19, 2024, issued under Sections 125 read with 127 of the GST Act, 2017. The demand was raised in the name of Harish Chandra Jain, the proprietor of M/s. Atishay Traders.
However, the court was informed that Harish Chandra Jain had died on February 3, 2019. Following his death, the GST registration of his proprietorship firm, M/s. Atishay Traders, which was in his name, was cancelled with effect from January 31, 2019, through an order dated September 21, 2019.
