Invalid Assessment of a Deceased Person under GST and Issuance of Notices After Cancellation of Registration

Invalid Assessment of a Deceased Person under GST and Issuance of Notices After Cancellation of Registration

Summary in Key Points:

• Issue: Whether an assessment order and notices issued after the death of the assessee and cancellation of their GST registration are valid.
• Facts: The proprietor of the assessee-firm passed away, and the firm’s GST registration was cancelled. However, the authorities subsequently issued a show cause notice, reminders, and ultimately passed an assessment order under Section 74 of the CGST Act. The assessee argued that these actions were invalid as they were directed towards a deceased person and a cancelled registration.
• Decision: The High Court held that the assessment order was not sustainable as it was made against a deceased person and after the cancellation of registration. The court set aside the assessment order.

Decision:

The High Court ruled in favor of the assessee, setting aside the impugned assessment order. The court emphasized the following:

• Assessment of a Deceased Person: The assessment order was made against a deceased person, which is not permissible under the GST law.
• Cancellation of Registration: The GST registration of the firm was cancelled before the issuance of the show cause notice and the assessment order.
• Invalidity of Notices and Order: The show cause notice, reminders, and the assessment order were all invalid as they were directed towards a deceased person and a cancelled registration.

Important Note: This case clarifies that assessment orders and notices cannot be issued against a deceased person or a cancelled GST registration. Any such actions taken after the death of the assessee or cancellation of registration are invalid and unsustainable. This decision protects the interests of legal heirs and ensures that they are not subjected to invalid assessments or notices.