2024 (10) TMI 441 - HC - GST

Validity of notices issued to a dead person - challenge to assessment orders passed based on such notices are void ab initio or not - violation of principles of natural justice - HELD THAT - On perusal of records, it is seen that the deceased, viz., Mr.Ramasamy Singaravelan was an assessee on the files of the respondent under the provisions of Tamil Nadu Goods and Service Tax Act, 2017 and the said person died as early as on 07.05.2022, however, the respondent, who is ignorant of the said fact has been continuously issuing notices in the name of the said deceased person and also passed assessment orders and not stopping with that also proceeded to initiate recovery proceedings. The petitioner came to know about the impugned proceedings only when the same was intimated by the respondent through phone call and on receipt of the recovery notice. Thus, it is crystal clear the impugned orders are ex parte orders, and suffers from violation of principles of natural justice and de hors the same, the notices issued to an assessee, who is no more and assessment orders passed based on such notices are void ab initio and liable to be set aside. Hence, this Court is inclined to set aside the impugned orders. The orders impugned as well as the consequential orders towards initiation of recovery proceedings are set aside - the matters are remitted back to the respondent for fresh consideration - petition allowed by way of remand.

Summary

Issues:
Challenge to orders for tax periods 2017-18 and 2022-23 due to notices issued to deceased assessee, violation of natural justice, and setting aside of impugned orders.

Analysis:
The High Court of Madras consolidated two Writ Petitions dealing with challenges to orders for tax periods 2017-18 and 2022-23 due to notices issued to a deceased assessee. The petitioner, the wife of the deceased, argued that all notices and orders were issued in the deceased's name, and she was unaware of them until informed by the respondent. The petitioner contended that such actions were void ab initio and sought to quash the impugned orders. The respondent agreed to consider the petitioner's reply and contest the issue.

Upon reviewing the records, the Court noted that the deceased assessee had passed away before the issuance of notices and subsequent orders. The Court found that the notices and assessment orders issued to a deceased person were ex parte, violating principles of natural justice. Consequently, the Court deemed the impugned orders void ab initio and set them aside, remitting the matters back to the respondent for fresh consideration.

In its final orders, the Court set aside the impugned orders for both tax periods, directed the petitioner to file replies to specific notices within four weeks, instructed the respondent to consider the replies and provide a clear notice for a personal hearing, and mandated the respondent to pass appropriate orders expeditiously after hearing the petitioner. The Court allowed both Writ Petitions on the specified terms, with no costs imposed, and closed the connected Miscellaneous Petitions.