Allahabad High Court Emphasised on Serving of Notice on the Legal Representative of Deceased before Initiating Proceedings
In a recent ground-breaking ruling, the Allahabad High Court has emphasized the necessity of serving a notice upon the legal representative of the deceased before initiating any proceedings. This landmark decision has significant implications, as illustrated in this case involving M/s TSR Subramanian, a Sole Proprietorship Firm.
Background of the Case:
The writ petition challenges a demand cum show-cause notice dated 26.03.2021, issued by the Assistant Commissioner, Central Goods & Service Tax, Noida, and the subsequent order dated 27.02.2023 by the Principal Commissioner. These actions imposed a substantial tax liability of Rs. 8,97,716/- on M/s TSR Subramanian for the Financial Year 2014-15, along with penalties and interest.
Key Arguments:
The petitioner, widow of the late Sri T.S.R. Subramanian, contends that the notice was erroneously issued against the deceased. The husband’s demise on 26.02.2018 was duly communicated to the authorities in response to a letter dated 07.12.2020. It was further explained that any discrepancies in income figures were attributed to the pension income of the deceased.
Legal Basis for Challenge:
The petitioner argues that despite notifying the authorities of her husband’s demise, the impugned order was still passed. Additionally, no show cause notice was served on the petitioner, and the entire proceeding, initiated after five years from the relevant date, is deemed illegal.
Court’s Decision:
The Allahabad High Court, after hearing arguments, observed that the impugned order failed to acknowledge the service of notice upon the legal representative, a crucial procedural lapse. As a result, the court set aside the order dated 27.02.2023 and remitted the matter to the Assistant Commissioner for a fresh decision.
Court’s Instructions:
The Assistant Commissioner is directed to afford a personal hearing to the petitioner or her representative, considering the petitioner’s age of 79 years. No fresh notice is required, and the petitioner is instructed to appear on 28.11.2023 with a certified copy of the court order. The court allows the petitioner to submit objections and relevant documents before the Assistant Commissioner, who is instructed to expedite the decision within two months, adhering strictly to legal procedures.
Conclusion:
This noteworthy judgment reinforces the importance of due process and serving notice to legal representatives in tax proceedings involving deceased individuals. The decision aims to ensure fairness and adherence to legal principles in such matters.
Writ Tax No- 1137/2023; Case- Mrs Lalitha Subramanian vs UOI; Order Date-7.11.2023
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