Case Law Details
Smt. Gulabben Gopaldas Jamvecha Vs State of Gujarat (Gujarat High Court)
Material Facts
The petitioner, a 72-year-old senior citizen and widow of late Shri Gopaldas Jaisukhlal Jamvecha, challenged GST recovery proceedings initiated by the respondent authorities. The deceased taxpayer was the proprietor of M/s. Patel Timbers.
Pursuant to the taxpayer’s application for cancellation of GST registration, the authorities passed an order dated 06.05.2019 cancelling the registration with effect from 31.03.2019. The order recorded the amount payable on cancellation as “0”. The taxpayer died on 01.08.2019.
Approximately four years later, the respondents issued Form GST DRC-01 raising an outstanding demand of ₹5,94,928. Thereafter, on 19.12.2023, an order under Section 73 of the State GST Act, 2017 was passed in Form GST DRC-01 imposing tax aggregating to ₹6,06,026, followed by Form GST DRC-07 dated 19.12.2023.
The petitioner asserted that the notices and orders had been issued in the name of a deceased person.
Procedural History
After the impugned orders, the petitioner was informed by telephone that payment under the Amnesty Scheme would result in waiver of the balance demand. The petitioner thereafter submitted representations dated 03.04.2025 and 12.12.2025 requesting cancellation of the Form GST DRC-07 order.
By communication dated 25.05.2026, the State Tax Officer informed the petitioner that the demand of ₹5,75,814 could not be cancelled. The petitioner then filed the present writ petition.
Legal Issue(s)
- Whether the show cause notice, assessment order and consequential recovery proceedings issued against a deceased taxpayer could be sustained.
- Whether the consequential recovery action, including freezing of the bank account, should be quashed.
Relevant Statutory Provisions
- Section 73 of the State GST Act, 2017.
Petitioner’s Submissions
The petitioner contended that:
- The impugned notice and orders had been issued in the name of a deceased person.
- She was a senior citizen and housewife, had never been connected with the proprietorship firm, and had no knowledge of the GST proceedings.
- The orders and consequential recovery action should therefore be cancelled.
Respondents’ Submissions
The respondents submitted that:
- The petitioner’s name, as legal heir of the deceased taxpayer, had been updated on the GST portal.
- The petitioner had requested the Assistant Commissioner, State GST, to grant access to the GST registration to enable filing of an appeal against the impugned order.
Court’s Findings and Reasoning
The High Court observed that both the show cause notice and the assessment order had been passed against a deceased person and therefore were required to be quashed and set aside.
The Court recorded that it did not find fault with either side. It observed that the petitioner, being a senior citizen and housewife, had never been connected with the functioning of the proprietorship concern and was unaware of the GST regime, while the respondents were also unaware of the taxpayer’s death.
Final Ruling
The Gujarat High Court allowed the writ petition and:
- Quashed and set aside the impugned show cause notice, assessment orders and subsequent actions of the respondents, including freezing of the bank account.
- Clarified that it would remain open to the respondents to initiate appropriate proceedings against the petitioner, if permissible under law, for the outstanding demand.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. In view of the peculiar set of facts, we are passing the present order in the interest of justice and to address the issue raised in the present writ petition.
2. The petitioner is a senior citizen aged about 72 years roped in the recovery proceedings by the respondent-Department. She is a widow of late shri Gopaldas Jaisukhlal Jamvecha i.e. the tax payer who was proprietor of M/s. Patel Timbers. Pursuant to the application filed by late shri Gopaldas Jamvecha for cancelling his registration under the Goods and Service Tax (GST), the order dated 06.05.2019 was passed by the respondent authorities cancelling the registration w.e.f. 31.03.2019. The determination of amount payable by a person to such cancellations is referred in the said order is “0”. Thereafter, shri Gopaldas Jamvecha passed away on 01.08.2019. After a period of 4 years, the respondents issued Form GST DRC-01 raising outstanding demand of Rs.5,94,928/-. Thereafter on 19.12.2023, the order under section 73 of the State GST Act, 2017 in Form GST DRC-01 was passed imposing tax aggregating to Rs.6,06,026/-, followed by the order in Form GST DRC-07 dated 19.12.2023.
3. Both the notice and order are passed in the name of a dead person. It appears that thereafter, the petitioner, who is not connected with proprietorship firm, was informed by the respondent Department through telephone that if the amount is deposited under the Amnesty Scheme, the balance demand would stand waived in accordance with the provisions. It appears that thereafter, the petitioner engaged a lawyer and made representation to the State Tax Officer on 03.04.2025 requesting cancellation of the order passed in Form GST DRC-07. Similar representation was made on 12.12.2025. On 25.05.2026, State Tax Officer-04, Unit-84, Junagadh informed the petitioner that the demand of Rs.5,75,814/- could not be cancelled. Such action is challenged by way of this writ petition.
4. Today, when the matter is taken up for hearing, learned AGP Ms.Shrimal has submitted that the name of the petitioner, who is a legal heir of late shri Gopaldas Jamvecha, has been updated in the GST portal. She has submitted that the petitioner has also requested the Assistant Commissioner, State GST to grant access to the GST registration so that they can file an appeal against the impugned order.
5. Under the circumstances, since the impugned show-cause notice as well as order has been passed against the dead person, the same are required to be quashed and set aside. We do not find any fault with the any of the parties; the petitioner who is a house wife, senior citizen, was never connected with the functioning of M/s. Patel Timbers and never knew about niceties of the GST regime, whereas the respondents were also unaware about death of the tax payer late shri Gopaldas Jamvecha.
6. In light of the foregoing facts, the impugned orders and subsequent action of the respondents including freezing of bank account are hereby quashed and set aside however, we clarify that it will be open for the respondents to initiate appropriate proceedings, if permissible under law, against the petitioner for the outstanding demand. The present writ petition stands allowed.
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