S.93 GST Act Does not Permit to Determine Demand Against Deceased and Recovery from Legal Heir: Allahabad HC

The Allahabad High Court has delivered a crucial judgment clarifying that GST proceedings cannot be initiated or continued against a deceased person. The court quashed a GST demand raised against a deceased proprietor, ruling that Section 93 of the GST Act, while allowing for the recovery of tax dues from the legal heirs, does not permit the determination of tax liability in the name of a deceased individual. The court emphasized that initiating proceedings against a dead person is a legal nullity and a violation of the principles of natural justice. For any liability to be determined, a valid show-cause notice must be issued to the legal representative, who must be given an opportunity to be heard. This ruling provides important protection for the legal heirs of deceased taxpayers and sets a clear precedent for the proper procedure to be followed by tax authorities in such cases.