Shubhangi Gupta Vs State of U.P. And 2 Others (Allahabad High Court)
The Allahabad High Court addressed a petition filed by Shubhangi Gupta, challenging a series of Show Cause Notices (SCNs) and consequential assessment orders issued under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017 (UGST Act). These proceedings were initiated against her late husband, Ankur Gupta, the deceased proprietor of M/s Modern Steel Traders.
The core issue before the court was the validity of GST proceedings initiated against a person who had already died.
The Court ruled unequivocally in favor of the petitioner, holding that proceedings for the determination of tax liability cannot be initiated against a deceased person. Since the SCNs and subsequent ex-parte orders were issued in the name of the dead proprietor, they were deemed bad in law and were consequently quashed and set aside. The court, however, granted the tax authorities the liberty to initiate fresh proceedings against the deceased’s legal representative in accordance with the law.
Factual Background
The undisputed facts of the case were:
1. Deceased Proprietor: The petitioner’s husband, Ankur Gupta, proprietor of Modern Steel Traders, died on February 21, 2019.
2. Registration Cancellation: Subsequent to his death, the petitioner applied for and secured the cancellation of the firm’s GST registration on July 8, 2019.
