Tax cannot be recovered by issuing notice against Dead person

R. Jayalakshmi Vs Commercial Tax Officer (Madras High Court)

The petitioner challenged a recovery notice issued by the second respondent dated 23.3.2018 directing that the dealer should pay the arrears of tax payable pursuant to the assessment order dated 30.1.1989 passed by the Deputy Commercial Tax Officer, Namakkal Town for the year 1987-88 under the provisions of the Tamil Nadu General Sales Tax Act, 1959.

The dealer – one Mr.V.Raju – the husband of the petitioner died on 11.6.2006 and consequently, proceedings could not be initiated  against a dead person. What is to be noted is that the said Mr.V. Raju challenged the assessment order dated 30.1.1989 as well as the consequential demand notice dated 30.9.2003 by filing W.P.No.36715 of 2004. In the said writ petition, several grounds were raised and a conditional interim order was granted on 13.12.2004. However, when the said writ petition was heard finally on 29.6.2016, it was stated that one of the counsel, who was on record, died and that the writ petitioner therein also died. These facts were not placed before this Court and hence, the said writ petition was dismissed for non prosecution. Thus, the grounds raised by the assessee in the said writ petition were never adjudicated. The dealer, in the said writ petition,  contended that he did only labour works for building body of lorries and that the same could not be stated to be a manufacturing process nor there was  an element of sale involved. Thus, without adjudicating the said issue, the second respondent cannot proceed to recover the amount, that too, by issuing a notice against a dead person. Hence, the impugned notice is held to be not sustainable in law.

For all the above reasons, the writ petition is allowed and the impugned order is quashed. However, it is open to the second respondent to proceed in accordance with law, if so advised. No costs. Consequently, the connected WMPs are closed.