Dead Men Don’t Get Notices: High Court Slams GST Officer for Posthumous Assessment

In a recent case, the petitioner approached the Madras High Court challenging a GST assessment order dated 20.08.2024 issued against his late father, who had passed away on 06.05.2021. The order was issued after the assessee’s death in May 2021, and no legal heir or representative had been substituted in the proceedings. The petitioner sought an opportunity to respond to the original show cause notice. The order was against the assessment year 2019–20, which ran from April 2019 to March 2020. As the legal heir, the petitioner asked the court to invalidate the assessment because it had been improperly made against a deceased person and asked for a chance to reply to the previous show cause notice.

Issue Raised:

Whether an assessment order passed under the GST Act in the name of a deceased person, without notifying or involving the legal heir and without providing an opportunity of hearing to him, is a violation of principles of natural justice.

High Court’s Decision:

The Court held that since the impugned assessment was passed against a dead person, it was invalid and illegal in law. It underlined how important it is to adhere to due process, which includes hearing the heir apparent. Accordingly, the Court quashed the assessment order and remanded the matter back to the GST officer for fresh adjudication after giving the petitioner a chance to respond. The officer was instructed to complete the reassessment within three months, and the petitioner was given thirty days to submit a response.

Read the full Judgment Below