Addepalli Sravanthi vs. The State Of Andhra Pradesh

Held

The Court allowed the writ petition, setting aside the impugned assessment order dated 24.05.2024. The Court directed the petitioner to approach the 4th respondent (Assistant Commissioner ST) and furnish the Family Member Certificate of the deceased. Upon receipt of this certificate, the 4th respondent is to conduct a fresh assessment following due procedure. This fresh assessment must involve the legal representatives of the deceased, including the petitioner, by issuing proper notices and providing a reasonable opportunity to be heard. The Court clarified that any recovery initiated after the fresh assessment order should be made against the estate of the deceased and against the legal representatives to the extent of the available estate and their business involvement. The ratio decidendi is that tax proceedings against a deceased entity must involve the legal representatives after proper identification and notice, adhering to the principles of natural justice.

Facts

The petitioner, AdDEPALLI SRAVANTHI, filed a writ petition challenging a Show Cause Notice (SCN) and an Order-in-Original (OO) issued by the Assistant Commissioner ST (Respondent No. 4) for the tax period April 2019 to March 2020. The SCN was dated 21.02.2024 and the OO was dated 24.05.2024, both concerning M/s. Sri Dattatreya Engineering Company, registered under GSTIN 37AFVPA8203M1Z1. The primary contention was that the proceedings were initiated and passed in the name of the deceased registered person, Nagaveera Venkata Satya Chandra Sekhar Addepalli, who passed away on 17.05.2021. The petitioner argued that in the absence of legal representatives being properly involved, the SCN and OO were not maintainable.

Key Issues

1. Whether the Show Cause Notice and Order-in-Original issued under Section 73 of the Andhra Pradesh Goods and Services Tax Act, 2017, are illegal, arbitrary, and without jurisdiction when passed in the name of a deceased registered person, violating the Principles of Natural Justice? Petitioner's Contention: The petitioner argued that the SCN and OO were not maintainable as they were issued in the name of the deceased registered person, Mr. Nagaveera Venkata Satya Chandra Sekhar Addepalli, who died on 17.05.2021. The petitioner relied on a previous Division Bench order of the High Court in W.P.No.6029 of 2025, where similar facts led to a specific direction. Revenue's Contention: The judgment records no specific argument from the revenue or State respondents.