Lrs of Krishan Lal Vs Union of India (Rajasthan High Court)
The petitioners, who are legal representatives (LRs) of late Shri Krishan Lal, challenged an Assessment Order dated 29.08.2024 issued by the Assistant Commissioner, State Tax, Sri Ganganagar, raising a demand of unpaid tax for Financial Year 2019–2020. The demand related to business activities carried out by the deceased, who had operated as sole proprietor of M/s Krishan Lal Khet Pal (GSTIN 08ABDPL1259L1ZH). The deceased had passed away on 25.05.2022.
The petitioners stated that the GST registration of the proprietorship was cancelled retrospectively with effect from 30.09.2022 through an order dated 13.10.2022. It was alleged that this cancellation was done without following due process and without granting an opportunity of personal hearing.
Subsequently, a show cause notice dated 17.05.2024 in Form GST DRC-01 was issued by the Joint Commissioner, State Tax, Sri Ganganagar, under Sections 50 and 73(1) of the CGST/RGST Act for Financial Year 2019–20. The notice called upon the deceased to make payment within 30 days. The petitioners contended that the notice was not in the prescribed format and was issued without providing an opportunity of personal hearing.
Thereafter, a demand order dated 29.08.2024 was passed in the name of the deceased. The petitioners challenged this order on the ground that it violated Section 75(4) of the CGST Act, which mandates that a personal hearing must be granted where an adverse decision is contemplated.
