2026-VIL-284-GSTAT-TVP
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SGST Tribunal

GST - Proceedings against a deceased proprietor, Requirement of notice to the legal heir under Section 93(1)(b) of the CGST Act, 2017 where the business is discontinued - Show cause proceedings on alleged excess ITC based on a mismatch between GSTR-3B and GSTR-2A – The proprietor had died, the business was discontinued and the registration was cancelled. The appeal was filed before the Tribunal by the legal heir - Whether the Respondent followed the procedure under Section 93(1)(b) by issuing notice to the legal heir for the estate of the deceased - HELD - On the death of the proprietor, the proprietorship comes to an end. Section 93(1)(b) makes the legal representative liable only out of the estate of the deceased, to the extent the estate is capable of meeting the charge, where the business is discontinued. It authorises post-death proceedings only against the legal representative after notice and hearing, and does not authorise determination of liability against a dead person - No effort was made to find whether any estate existed, and no notice was issued to the legal heir even after more than three years from the date of death. Various High Courts have held that proceedings against a deceased person are non est and void, and the earlier decision of the Tribunal taking the same view applies - The entire proceedings against the deceased taxpayer are illegal, without jurisdiction and null and void - The order of the FAA is quashed and the entire proceedings are set aside - On merits of the case, the deceased appellant was eligible for ITC having filed all the certificates issued by the suppliers, who have certified that they have paid the GST on the invoices and only due to mistake in filing GST Return GSTR1 they have shown such invoices in B2C instead of B2B. It is not at all disputed that the suppliers have paid the tax and the appellant was always eligible for ITC, even during his lifetime - The impugned order is quashed and set aside. The appeal is allowed
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