2026-VIL-620-MAD
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SGST High Court Cases

GST - Initiation of assessment proceedings against legal heirs of deceased taxable person - Whether assessment proceedings can be initiated from the start against the legal heirs of a deceased taxable person where the business is discontinued and no part of the proceedings whatsoever had been initiated during the lifetime of the taxable person – HELD - In terms of Section 93 of the CGST Act, 2017, even in a case where the business of the deceased taxable person has been discontinued and no show cause notice or assessment proceedings had been initiated during the lifetime of the taxable person, fresh proceedings may be initiated against the legal heir under Sections 73, 74 or 74-A of the CGST Act, 2017. The expression "person chargeable with tax" occurring in Section 74 is not confined to a taxable person as defined under Section 2(107) of the CGST Act but encompasses any person upon whom the statute imposes the obligation to discharge the tax liability, including legal heirs - Section 93 expressly creates a statutory liability upon legal heirs and expressly contemplates situations where tax, interest or penalty is determined after the death of the taxable person. The Legislature has consciously employed the wider expression "person chargeable with tax" instead of the narrower expression "taxable person" - Once the statute authorises determination of liability after the death of the taxable person, the expression "determined after his death" must necessarily include the entire adjudicatory process contemplated under Sections 73, 74 or 74-A including the issuance of notices and all procedural steps preceding determination. However, in cases of discontinued businesses, the liability of the legal heir remains limited to the extent to which the estate inherited by the heir is capable of meeting the charge - The writ petition stands dismissed
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