The Madras High Court quashed the GST ( Goods and Services Tax ) demand order issued against the deceased proprietor after 4 years. The court remanded the matter for reconsideration. The counsel of the petitioner submitted that the petitioner’s wife, who was the Proprietor of M/s.S.R.Steels, passed away on 21.11.2019. Thereafter, the department had issued the show cause notice and passed the impugned GST order dated 07.02.2024 against the petitioner’s wife, who is a dead person. Hence, the counsel requested the court to set aside the impugned order. Further, he requests this Court to grant an opportunity to the petitioner, who is the only legal heir of the deceased, to present his case before the respondent. He also requested to de-freeze the bank account of the petitioner.

Follwoingly, the Special Government Pleader appearing for the department also accepted the submissions made by the counsel for the petitioner. Further, since the petitioner is the only legal heir of the deceased, he requested the Court to direct the petitioner to file the reply to the show cause notice. Get a Copy of The Law of Goods and Services Tax : A Comprehensive Commentary, Click here He also requested the bench to remit the matter back to the respondent, subject to the payment of 10% of the disputed tax amount by the petitioner. Considering the submissions of the both counsels, Justice Krishnan Ramasamy noted that impugned order was passed by the respondent against a dead person, who was passed away on 21.11.2019. Thus, it is to be set aside. The court noted that it is important to provide opportunity to the legal heir of the deceased to submit the claims. On condition of pre-deposit of 10%, the bench remanded the matter for reconsideration.

The bench directed the petitioner to file their reply/objection along with the required documents, if any, within a period of two weeks. The department was directed to consider the reply submitted by the petitioner and issue a 14 days clear notice, by fixing the date of personal hearing and thereafter, pass appropriate orders on merits and in accordance with law. Get a Copy of The Law of Goods and Services Tax : A Comprehensive Commentary, Click here Giving the above directions, the bench directed the department to release the bank attachment and communicate to unfreeze the bank account to the concerned bank as the impugned order was set aside. However, all these should be done on receipt of 10% pre-deposit.