Samban Pharma (Prop.) Late Satish Kumar Shukla Vs Deputy Commissioner And Another (Allahabad High Court)
The Allahabad High Court has quashed a GST demand of over Rs. 18 lakh raised against Samban Pharma, a proprietorship firm, after its proprietor, Satish Kumar Shukla, had passed away. The court ruled that the show cause notice and subsequent demand order were invalid because they were issued in the name of a deceased person without notifying the legal heir.
The petition was filed by Shukla’s son, Siddharth Shukla, who argued that his father died on March 18, 2023. A show cause notice was issued on December 28, 2023, and uploaded to the firm’s online portal, but it went unanswered. This led to a final order on April 17, 2024, raising a demand of Rs. 18,09,116.65. Shukla’s son contended that the proceedings were void from the start since the proprietor was deceased.
The court examined Section 93 of the Goods and Services Tax Act, which deals with the liability of a legal representative to pay tax, interest, or penalties. However, the court clarified that this section only addresses the liability itself and does not authorize a determination to be made against a dead person. The court held that it is a prerequisite for a show cause notice to be issued to the legal representative before any tax determination can be made.
