Ajeesha Beevi vs. The State Tax Officer (GST)
Original PDF →Facts
The petitioner, Ajeesha beevi, filed a writ petition seeking to quash an assessment order dated 17.07.2020 passed by the respondent, The State Tax Officer, (GST), Devakottai Assessment Circle. The impugned order was passed against a deceased person. The respondent's own records indicated that the taxable person had died and the business was closed. The DRC-01 notice was issued on 11.03.2020 under Section 73 of the SGST Act, 2017, along with interest calculated under Section 50(3) of the SGST Act, 2017. The petitioner's counsel brought to the court's attention that the order was passed against a dead individual.
Held
The Court held that the impugned assessment order dated 17.07.2020, passed by the respondent, is illegal and unsustainable. The reasoning was based on the admitted fact that the order was passed against a deceased person, and the business had been closed. The Court found it 'very interesting' that the respondent passed an order against a dead person. Therefore, the Court set aside the impugned order. The respondent was granted liberty to issue a fresh notice to the legal heirs of the deceased and, after providing them with an effective opportunity of being heard, to pass orders in accordance with the law. The writ petition was allowed with no costs.
Key Issues
1. Whether an assessment order passed against a deceased person under Section 73 of the SGST Act, 2017, is legally valid and sustainable? Petitioner's Argument: The petitioner argued that the assessment order is illegal and devoid of merits because it was passed against a deceased person, as admitted by the respondent. The business was closed, and the taxable person was no longer alive, rendering the assessment order a nullity. Respondent's Argument: The respondent did not explicitly present arguments against the petitioner's claim. However, the respondent's own records, as quoted in the judgment, acknowledged the death of the taxable person and the closure of the business, which led to the issuance of the DRC-01 notice and subsequently the impugned assessment order.
Sections Cited
Section 73, Section 50(3)
AI-generated summary — verify with the full judgment below
Before: and
This writ petition is filed for writ of Certiorari, to quash the impugned assessment order dated 17.07.2020 of the respondent as illegal and devoid of merits.
In this writ petition, the impugned order is passed against the dead person. The learned Counsel for the petitioner referred to the impugned order which reads as under: “The taxable person has not appeared before the proper officer. They Accountant Thitu.Kani attended and said that taxable person was death and business was closed. Hence DRC-01 notice generated and issued on 11.03.2020 under section 73 of SGST Act 2017 along with interest calculated under section 50(3) of SGST Act 2017 detailed as below:” 2/5 https://www.mhc.tn.gov.in/judis
The respondent has categorically held that the taxable person died and the business was closed. Very interestingly, the respondent has stated that that is why, the impugned order of assessment is passed. It is clearly an admitted fact / statement of the respondent that the order is passed against the dead person.
Therefore, the impugned order is set aside and the respondent is at liberty to issue notice to the legal heirs and after giving effective opportunity, the respondent shall pass orders as per law. 5.With the above said direction, the writ petition is allowed. No costs. Consequently, connected miscellaneous petition is closed. Index : Yes / No 03.07.2023 Internet : Yes (2/2) NCC : Yes / No Tmg 3/5 https://www.mhc.tn.gov.in/judis To The State Tax Officer, (GST), Devakottai Assessment Circle, Devakottai. 4/5 https://www.mhc.tn.gov.in/judis S.SRIMATHY, J Tmg
2023 (2/2) 5/5 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.