Balasubramanian Vs State Tax Officer (Madras High Court)
Assessment Proceedings Against a Deceased Proprietor Are Void: Madras High Court Allows Fresh Action Only Against Legal Heirs
Background of the Case
In Balasubramanian Vs. State Tax Officer (Madras High Court), the petitioner challenged an assessment order dated 18.12.2025 passed under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST Act). The challenge was based on a fundamental jurisdictional defect: the show cause notice initiating the proceedings and the consequential assessment order were both issued in the name of a proprietor who had already passed away.
The Court examined the records and found that the proprietor of the concern had died before the issuance of the show cause notice. Despite this fact, the tax authorities proceeded to issue the notice and subsequently passed the assessment order in the name of the deceased person.
The central question before the Court was whether assessment proceedings initiated and completed against a dead person could survive in law.
Relevant Statutory Provisions
1. Section 73 of the GST Act
Section 73 of the CGST/TNGST Act deals with determination of tax not paid, short paid, erroneously refunded, or input tax credit wrongly availed or utilized, where there is no allegation of fraud, wilful misstatement, or suppression of facts.
The provision requires:
