Can an assessment order be issued to assessee who is dead on the day of issuing the order?

PJ/Case Law/2019-2020/3616

Vimal Raj Vs State Tax Officer (Kerala High Court) W.P. (C). No. 927 of 2020(M) dated 22.01.2020

Issue: Can an assessment order be issued to assessee who is dead on the day of issuing the order?
Brief Facts: The petitioner has stated that the assessment order has been issued by the department in the month of March 2019 whereas the assesse has already deceased in the month of March 2018.
Applicant’s Contention: The appellant contended on the basis of the following points
a. There cannot be any orders passed against the deceased.
b. Provisions of Section 93 of CGST Act have not been followed.
So the petitioner contends that the impugned orders are illegal and arbitrary.
Reasoning of Judgement: After hearing the contention and verifying the certificate issued by the Registrar of Births and Deaths, the hon’ble Kerala High court has passed an order that an impugned assessment order passed against a deceased person is a nullity in the eye of law. The high court has further mentioned that the state officer’s shall be at liberty to take fresh action in the assessment proceedings after ascertaining from the competent Revenue Officials as to who all are the legal representatives or legal heirs of the said deceased assessee. Then the respondent will be at liberty to render reasonable opportunity of being heard to such legal representatives and finalise the assessment proceedings in the manner as per the law.
Comment:- As per Section 93(1) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where a person, liable to pay tax, interest or penalty under this Act, dies, then––
(a) if a business carried on by the person is continued after his death by his legal or any other person, such legal representative or other person, shall be liable to pay tax, interest or penalty due from such person under this Act; and
(b) if the business carried on by the person is discontinued, whether before or after his death, his legal representative shall be liable to pay, out of the estate of the deceased, to the extent to which the estate is capable of meeting the charge, the tax, interest or penalty due from such person under this Act, whether such tax, interest or penalty has been determined before his death but has remained unpaid or is determined after his death.
The provisions clearly state that the legal representatives would be responsible for any proceedings initiated after the death of the taxable person. The departmental officers should be very careful while issuing the orders as this increases cost of the litigation and causes undue stress to the legal representatives of the deceased persons.
In the present case also, the petitioner has requested the high court to grant relief by way of providing the cost of these proceedings.
Prepared By- CA Akanksha Anchaliya

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PJ/Case Law/2019-2020/3616

Vimal Raj Vs State Tax Officer (Kerala High Court) W.P. (C). No. 927 of 2020(M) dated 22.01.2020

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