2026-VIL-368-BOM
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SGST High Court Cases

GST - Recovery of tax dues from legal heir, Violation of principles of natural justice - Whether Petitioner's bank account can be attached for recovery of deceased father's tax dues without prior adjudication of liability under Section 93 of the CGST Act, 2017 – HELD – The impugned action of attaching the Petitioner's bank account without issuance of any prior show cause notice or affording him an opportunity of hearing, to determine whether the Petitioner satisfies the statutory conditions under Section 93 of being a legal representative or person continuing the business of the deceased taxable person, violates principles of natural justice - Recovery powers under Section 79 are undoubtedly wide. However, the powers of recovery under Section 79 are conditional upon the existence of an established liability against the person from whom recovery is sought, which needs to be premised on materials and not presumptions. The Department cannot straightaway invoke recovery proceedings and freeze the Petitioner's bank account without first determining whether the Petitioner's proprietorship is legally distinct; whether he has, in fact, continued the business of the deceased; or whether statutory conditions under Section 93 stand satisfied - A bank account constitutes property within the meaning of Article 300A of the Constitution, and depriving the Petitioner of his property without the due process of law being followed results in a violation of his constitutional rights. The Department is directed to de-freeze the Petitioner's bank account and granted liberty to initiate appropriate proceedings against the Petitioner, if it is of the opinion that the dues of the Petitioner's deceased father are recoverable from the Petitioner as per the requirement of law including under Section 93 – The writ petition is allowed
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