T John Bosco vs. The Assistant Commissioner Of CGST And Cex

Facts

The petitioners are the legal heirs of Johnson Thomas, who operated a proprietary concern, 'St.John Saw Mill & Timbers'. Johnson Thomas passed away on 08.10.2023. The respondent, Assistant Commissioner of CGST & CEX, issued an assessment order dated 20.10.2023, which was received by the petitioners on 21.10.2023, after the death of the assessee. The petitioners contend that the order is void as it was passed against a deceased person and that their representation for a fresh notice and hearing was not considered. They are unable to file an appeal as they were not parties to the original assessment proceedings. The respondent argued that the assessment for the period 2017-2018 was initiated during the assessee's lifetime, with a show cause notice issued on 14.03.2023, and the assessee had participated in the proceedings.

Held

The Court held that the petitioners, as legal heirs of the deceased taxable person, Johnson Thomas, have a legal right to defend the impugned assessment order, as per Section 93 of the GST Act, which makes legal heirs liable for tax arrears upon the death of a taxable person. However, since the petitioners were not parties to the original assessment proceedings, they were unable to prefer an appeal. Consequently, the Court found it appropriate to set aside the impugned assessment order. The Court directed the respondent to issue a fresh notice to the legal heirs of Johnson Thomas, conduct an enquiry, provide an opportunity for a personal hearing to the petitioners, and pass a fresh order within six months from the date of receipt of a copy of the order. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether an assessment order passed against a deceased person, after their death, is void ab initio, and if so, what is the consequence, turning on the principles of natural justice and the provisions of the GST Act concerning the liability of legal heirs? The petitioners argued that the impugned assessment order dated 20.10.2023 is void ab initio as it was passed after the death of the assessee, Johnson Thomas, on 08.10.2023. They contended that they, as legal heirs, were not parties to the assessment proceedings and thus could not prefer an appeal. They sought a fresh notice and an opportunity for a personal hearing. The respondent argued that the assessment proceedings for the period 2017-2018 were initiated during the assessee's lifetime, with a show cause notice issued on 14.03.2023, and the assessee had participated in the enquiry and submitted a reply. They suggested liberty to conduct a fresh enquiry against the legal heirs for ineligible ITC and delayed payment of interest.