Mrs V A Nirmala Mary vs. Union Of INDIA

Facts

The petitioner, Mrs. V.A. Nirmala Mary, is the wife of the deceased, M. Velu Arul Das. The petitioner sought to quash a Show Cause Notice dated April 20, 2021, an Order-in-Original dated July 29, 2021, and another Show Cause Notice dated July 30, 2021, all issued by Respondent No. 3, the Deputy Commissioner of Central Tax, GST Commissionerate, Bengaluru East. The petitioner contended that these proceedings were initiated against her deceased husband, who passed away on July 20, 2019, prior to the issuance of the notices and order. She argued that the proceedings were a nullity and violative of natural justice as the legal heirs, herself and her children, were not provided an opportunity to be heard. The respondents argued that one of the petitioner's sons had authorized a tax consultant to appear on his behalf, negating the petitioner's claim.

Held

The Court allowed the petition. It held that the undisputed fact that the deceased, M. Velu Arul Das, expired on July 20, 2019, prior to the initiation of the proceedings, including the issuance of the impugned notices and passing of the impugned order, was a critical factor. While one son had authorized a tax consultant, the Court, adopting a justice-oriented approach, deemed it appropriate to provide one more opportunity to the petitioner and her children to contest the proceedings. Therefore, the impugned Show Cause Notice dated April 20, 2021, Order-in-Original dated July 29, 2021, and the subsequent Show Cause Notice dated July 30, 2021, were set aside. The matter was remitted back to Respondent No. 3 for fresh consideration in accordance with the law. The petitioner and her children were directed to appear before Respondent No. 3 on October 17, 2022, and were granted liberty to submit pleadings and documents, and to take assistance of a tax consultant. All rival contentions were kept open, and no opinion was expressed on their merits.

Key Issues

1. Whether the Show Cause Notice dated April 20, 2021, Order-in-Original dated July 29, 2021, and Show Cause Notice dated July 30, 2021, issued by Respondent No. 3 are a nullity and violative of the principles of natural justice, given that they were issued against a deceased person, M. Velu Arul Das, who died on July 20, 2019, prior to the initiation of these proceedings? Petitioner's contentions: The proceedings initiated against a dead person are a nullity. The impugned notices and order were passed without providing an opportunity to the legal heirs (petitioner and her children) to appear and contest the proceedings, thus violating the principles of natural justice. The matter should be remitted back to Respondent No. 3 for reconsideration after providing an opportunity to the legal heirs. Respondents' contentions: One of the petitioner's sons, Mr. Patrick Abhishek V.A., had authorized a Tax Consultant, Mr. R. Ravi Kumar, to appear on his behalf, indicating that there was representation and thus no merit in the petition.