2013 (4) TMI 721 - HC - Central Excise

Summary

Issues involved: Validity of assessment order u/s 26th February, 2010 against deceased assessee without notice to estate of deceased.

Summary:

Issue 1: Failure to provide notice to estate of deceased assessee before passing assessment order.

The deceased assessee received a show cause notice on 15th February, 2008, which was not responded to. Despite non-response, three hearing dates were scheduled, none of which were attended by the deceased assessee. The deceased assessee passed away on 14th March, 2009, and the assessment order was issued on 26th February, 2010, without notice to the estate of the deceased. The heir of the deceased assessee challenged the assessment order on the grounds that an order affecting the estate of a deceased cannot be passed without notice to the estate. The High Court acknowledged that an adjudication is required to be made on notice to the heirs to affect the estate left by the deceased. The Court allowed the appeal, set aside the original assessment order, and directed the assessing officer to issue a fresh notice of assessment to the appellant, representing the estate of the deceased.

Issue 2: Legal implications of assessment order against deceased assessee.

Upon the death of the assessee, the estate passes on to the heirs, and nothing in law remains attached to the deceased person. Any adjudication made after the death, but against the deceased, cannot be enforced against the estate left by the deceased in the hands of the heirs and legal representatives. The Court emphasized that in the interest of justice, the assessing officer should issue a fresh notice of assessment to the appellant, representing the entire estate of the deceased. The appellant was not entitled to raise a contention regarding limitation for the period between 15th February, 2008, and 13th March, 2009, as the deceased assessee did not respond to the initial notice. The Court clarified that the appellant could present any plea deemed appropriate in response to the fresh notice to be issued.

This judgment highlights the importance of providing notice to the estate of a deceased assessee before passing an assessment order affecting the estate. It underscores the legal principle that an adjudication made after the death of the assessee, but against the deceased, cannot be enforced against the estate left by the deceased without notice to the heirs. The Court's decision to set aside the original assessment order and allow the assessing officer to issue a fresh notice to the appellant, representing the deceased's estate, ensures fairness and upholds the principles of natural justice.