Case Law Details
Munusamy Nagabushanam (Deceased) Vs Deputy Commercial Tax Officer (Madras High Court)
In a latest GST judgment by the High Court of Madras, the issue of assessment orders issued to a deceased person was addressed. The case involved Munusamy Nagabushanam who was represented by his legal heir, Nethaji Nagabushanam. This article will analyze the key points of the judgment and discuss its implications in the context of Goods and Services Tax (GST) law. The petitioner contended that the assessment orders were issued after the demise of his father, and therefore, were unsustainable.
Key Arguments
Unsustainability of Assessment Orders: The petitioner’s counsel, argued that the assessment orders were invalid as they were issued to a deceased person. He supported his argument by presenting the death certificate and legal heirship certificate, clearly indicating that the impugned orders were subsequent to his demise.
Court’s Decision
After considering the arguments put forth by both parties, the Honourable Justice delivered an order. The court accepted the petitioner’s contention and held that the assessment orders issued to a deceased person cannot be sustained. Consequently, the impugned orders dated 19.09.2023 were set aside.
Implications and Way Forward
Initiation of Proceedings against Legal Heirs: In its order, the court left it open for the respondent, to initiate proceedings against the legal heirs. This implies that the tax authorities can pursue the recovery of any outstanding tax liabilities from the legal heirs of the deceased.
Conclusion
The recent judgment by the High Court of Judicature at Madras highlights the importance of ensuring that assessment orders are issued to the correct and legally recognized entities. In this case, the court rightly set aside the assessment orders issued to a deceased person. However, it is crucial for the tax authorities to initiate proceedings against the legal heirs to recover any outstanding tax liabilities.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
In these two writ petitions, assessment orders pertaining to distinct assessment periods are assailed on the ground that such orders were issued to a dead person. The petitioner is one of the sons of the late Mr. Munusamy Nagabushanam. By further submitting that the petitioner’s father died on 08.05.2021, whereas the show cause notice and assessment orders are subsequent thereto, the present writ petitions were filed.
2. Learned counsel for the petitioner invited my attention to both the death certificate and the legal heirship certificate and pointed out that these proceedings are unsustainable since the impugned orders are against a dead person.
3. Mr. T.N.C.Kaushik, learned Additional Government Pleader, accepts notice for the respondent.
4. The petitioner has placed on record the death certificate. Such certificate indicates the date of death as 08.05.2021. All the relevant communications, including the impugned assessment orders, are subsequent thereto. Consequently, orders impugned herein cannot be sustained.
5. Therefore, impugned orders dated 19.09.2023 are set aside by leaving it open to the respondent to initiate proceedings against the legal heirs of the late Mr. Munusamy Nagabushanam.
6. W. P. Nos. 14718 and 14723 of 2024 are disposed of on the above terms. No costs. Consequently, W.M.P. Nos. 15957 and 15958 of 2024 are closed.
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