The Allahabad High Court in the case of SATENDRA KUMAR VERSUS STATE OF U.P., AND 2 OTHERS vide Writ Tax No. – 1728 of 2025 dated 21.04.2025, has held that proceedings cannot be initiated against a person who is deceased. Thus, proceedings cannot be initiated against the legal heirs of the deceased or against the estate of the deceased. Tax authorities must comply with Section 93 by proceeding against the legal heirs, respecting principles of natural justice, and cannot shortcut by continuing proceedings against the deceased. 

Facts of the Case: In this case, the writ petition was filed by the son of Late Mr. Surendra Kumar, who was the proprietor of M/s. S.K. Industry. Mr. Surendra Kumar passed away on 17.02.2021. After death of the deceased, his wife applied for cancellation of the GST registration (who also died), which was accepted and the registration was cancelled on 29.07.2022. Despite this, the GST authorities issued SCN u/s 74 of the CGST Act, and subsequently passed an ex parte adjudication order both in the name of the deceased proprietor. The petitioner challenged these proceedings on the ground that the notices and orders were illegal as they were issued against a dead person.

Held: The Court referred Section 93 of the CGST Act, 2017, which provides provisions relating to liability to pay tax, interest, or penalty after the death of a taxable person. and stated that it is inherent that proceedings cannot be initiated against a person who is deceased. Thus, proceedings cannot be initiated against the legal heirs of the deceased or against the estate of the deceased. However, it was open to the authorities to proceed in proper manner against the legal representative/heirs of the deceased proprietor and having failed to do so, the entire proceedings initiated from the stage of show cause notice is bad in law.

Further, the Court relied on the judgment in the case of Amit Kumar Sethia vs. State of U.P. and another, Writ Tax No.917 of 2025 dated 02.04.2025. wherein it was held that Determination of liability against a dead person is void ab initio . Also, a valid determination requires prior notice and opportunity of hearing to the legal heirs.

The Court held that the uploading of the SCN and order on the GST portal was insufficient because, the deceased could not have accessed the portal and the legal heirs were not made parties to the proceedings. The Court emphasized that continuation of proceedings without substituting legal heirs amounts to Violation of principles of natural justice.