Vinay Hiroo Thadani Vs Deputy Commissioner of CGST and Central Excise & Ors. (Bombay High Court)
The Bombay High Court dealt with a petition challenging recovery proceedings initiated against the son of a deceased taxpayer under the Central Goods and Services Tax Act, 2017. The petitioner contended that tax recovery proceedings relating to alleged wrongful utilization of Input Tax Credit by his deceased father could not be enforced against him, particularly when the show cause notice was issued after his father’s death. He also challenged the applicability of Sections 74 and 93 of the CGST Act to such recovery and argued that the impugned order violated principles of natural justice because his detailed reply to the show cause notice was allegedly not considered.
The department argued that the petitioner had failed to appear before the authority despite several notices and therefore could not claim breach of natural justice. After examining the record, the High Court observed that, considering the peculiar facts of the case and the demand being raised against the petitioner in relation to his deceased father’s alleged tax liability, the petitioner should be granted another opportunity of hearing before the Deputy Commissioner.
The Court directed the authority to hear the petitioner on all contentions and thereafter pass a fresh order on the show cause notice in accordance with law. It further directed that any documents sought by the petitioner in relation to the proceedings be furnished upon a specific application. The petitioner was directed to appear before the authority on 13 March 2026, and the fresh order was to be passed within four weeks from conclusion of the hearing. The Court clarified that all contentions regarding the constitutional challenge to the statutory provisions were kept open and disposed of the petition without costs.
