GST Order Quashed as Tax Proceedings Were Initiated Against a Deceased Person

Rajvanti Devi Vs State of U.P. (Allahabad High Court)

The petition challenged an order dated 28.02.2025 passed under Section 73 of the Goods and Services Tax Act, 2017, by which a demand of ₹6,43,569.58 was raised in the name of Virendra Kumar Maurya. The petition was filed by Rajvanti Devi, the wife of the deceased proprietor. She submitted that Virendra Kumar Maurya had died on 20.05.2021, but a show cause notice dated 30.11.2024 was subsequently issued in his name under Section 73 of the Act. As the notice was uploaded on the GST portal, the petitioner had no occasion to access the portal, resulting in the show cause notice remaining unanswered. Consequently, the authorities passed the order dated 28.02.2025 raising the demand against the deceased person.

The petitioner argued that the department was aware that the proprietor had already died and that the firm’s registration had been cancelled. Despite this knowledge, the proceedings continued in the name of the deceased, culminating in the impugned order. It was contended that since the proceedings were conducted against a deceased person, they were void ab initio and the order deserved to be quashed.

Counsel for the respondents defended the impugned order by relying on Section 93 of the Goods and Services Tax Act, 2017. It was submitted that under this provision, recovery of tax dues can be made from the legal representatives even if the determination of tax occurs after the death of the proprietor.