Show Cause Notice Issued Against Deceased Proprietor Held Void by High Court

Case Summary

Case Title: Samban Pharma v. Deputy Commissioner and Another
Court: Allahabad High Court
Petition Number: Writ Tax No. 2256 of 2025
Relevant Sections: Section 73(9), Section 93 – CGST Act, 2017
Category of Dispute: Demand raised post demise of proprietor without notice to legal heir
Date of Judgement: 15.05.2025
Bench: Hon’ble Chief Justice Arun Bhansali and Hon’ble Justice Kshitij Shailendra

Facts of the Case (¶1–3)

• A demand order dated 02.12.2023 was passed under Section 73(9) of the CGST Act raising liability of ₹27,33,816.10 against Samban Pharma, a sole proprietorship (¶1).

• The petitioner, Mr. Siddharth Shukla, son of Late Satish Kumar Shukla (proprietor), stated that his father passed away on 18.03.2023 before the issuance of the SCN on 25.09.2023 (¶2).

• The SCN was uploaded online under the “Additional Notices and Orders” tab, went unanswered due to the proprietor’s death, and culminated in an ex parte order (¶2–3).

Question(s) in Consideration (¶3–4)

• Whether issuance of a show cause notice and passing of demand order against a deceased person is legally sustainable under Section 73 of the CGST Act?

• Whether Section 93 of the CGST Act permits initiation and determination of tax liability posthumously without notice to legal heirs?

Observation of Court (¶6–9)

• The court examined Section 93, which governs tax liability post-death and noted that it prescribes recovery from legal heirs only to the extent of the estate (¶6).

• Importantly, Section 93 allows recovery from legal representatives but does not authorise determination of liability against a deceased person (¶7).

• It is a legal prerequisite (sine qua non) that legal heirs be given a show cause notice for such proceedings to be valid (¶8).

• The SCN and order issued against a deceased person without hearing the legal representative is invalid in law (¶9).

Judgement of the Court (¶10)

• The order dated 02.12.2023 is quashed and set aside (¶10).

• The department is at liberty to initiate proceedings afresh in accordance with law, by issuing notice to legal representatives (¶10).

Between Fine Lines

1. GST authorities cannot issue SCNs or determine tax liability in the name of a deceased person.

2. Section 93 allows recovery from legal heirs but only after valid determination.

3. Legal representatives must be notified and heard before any proceedings.

4. Uploading SCN on GST portal is not sufficient where the person concerned is deceased.

5. The court protected procedural fairness and due process under GST law.

Summary of Referred Cases