Rishi Shangari Vs Union of India (Jharkhand High Court)
Legal representative not liable to discharge outstanding GST liability of the deceased unless proved to be continuing the business-High Court of Jharkhand
Facts of the case:
1.Summon was issued to the father of petitioner regarding non-payment of GST. Upon receipt of summon, the petitioner responded to summon and apprised the Department regarding the Death of the father and requested for waiver of liability pointing out that proceedings cannot be initiated against a dead person.
2. Whereas, upon the death of father, the Petitioner had obtained fresh registration in the same proprietary concern’s name.
3. However, the Department issued impugned orders against the petitioner citing provisions of Section 93(1)(a) and holding that if the business is carried on by a person’s legal representative after his death, the legal representative would be liable to pay tax, interest or penalty.
4. Aggrieved by the same, the Petitioner preferred the writ petition.
5. Hon’ble High Court in this case observed that the Department has failed to furnish any material evidence to show as to how the petitioner was said to be continuing business of the father’s proprietary concern having himself obtained a fresh registration.
6. The Court held that in the absence of any material referred to establish that petitioner was continuing the business in the name of his father’s proprietary concern after his father’s death in spite of the petitioner obtaining a fresh registration in his own name, the impugned order is perverse, based on no evidence and cannot be sustained.
