Prasad Voruganti Vs Deputy Assistant Commissioner of State Tax and Others (Andhra Pradesh High Court)
In a recent ruling, the Andhra Pradesh High Court has held that Goods and Services Tax (GST) notices issued in the name of a deceased assessee cannot be considered validly served on their legal heirs. This decision by the bench addresses a crucial procedural aspect of tax administration when dealing with a deceased taxpayer’s liabilities.
The case, Prasad Voruganti Vs Deputy Assistant Commissioner of State Taxes and Others, involved the petitioner whose father, a registered person under the GST Act, passed away on October 6, 2021. Subsequently, on February 28, 2024, the petitioner received an assessment order raising a demand of Rs. 20,13,774/- against the deceased father.
The petitioner approached the High Court, asserting that he was unaware of the initiated proceedings and had not been given any opportunity to present his case. A primary contention was that the assessment order itself was invalid, having been passed against a deceased individual.
The Court referred to Section 93(1) of the Central Goods and Services Tax Act, 2017, which outlines special provisions for tax liability in certain situations, including the death of a taxpayer. This section specifies that if a deceased person’s business is continued by a legal representative, that representative is liable for tax, interest, or penalty. If the business is discontinued, the legal representative is liable to pay out of the deceased’s estate, to the extent capable of meeting the charge.
