Allahabad HC Invalidates Posthumous GST Assessment, Orders Fresh Notice to Successor

Upmanyu Kattha Industries Vs State of U.P. and another (Allahabad High Court)

Allahabad High Court ruled in favor of the petitioner in the case of Upmanyu Kattha Industries Vs State of U.P., setting aside an ex parte GST assessment order issued posthumously. The original proprietor, Shri Shishir Awasthi, passed away on December 25, 2023, and the firm’s GST registration was canceled effective January 31, 2024. Despite this, tax authorities issued a show cause notice on February 12, 2024, followed by multiple reminders, ultimately leading to an ex parte assessment on September 20, 2024. The petitioner’s wife, Mallika Awasthi, who had taken over the business and obtained a new GST registration, challenged the order, arguing that the proceedings against a deceased individual were invalid and that she was denied an opportunity for a hearing.

The court acknowledged that the assessment had been improperly issued in the name of a deceased person and ruled that it could not be sustained. However, considering that the petitioner had taken over the business as the legal heir, the court directed tax authorities to issue a fresh notice in her name and conduct proceedings in accordance with the law. This decision underscores the necessity of adhering to due process when dealing with GST assessments involving deceased proprietors. The petition was accordingly disposed of, reinforcing the importance of procedural compliance in tax administration.