2024 (7) TMI 1347 - HC - GST

Challenge to assessment order - liability of tax based on deceased husband's business - recovery of the tax from the petitioner, after husband's death - whether business of the deceased husband was carried on by the petitioner or not - HELD THAT - The petitioner appears to have replied to the respondent on the letterhead of the proprietary concern implying as if the petitioner was carrying on the business of her late husband, namely Sundaramurthy, who has died on 20.12.2022. This Court is inclined to set aside the impugned orders and remit the cases back to the respondent to pass a fresh order on merits and in accordance with law. The petitioner shall file a reply to the notices that preceded the impugned orders. Petition allowed.

Summary

Issues:
Challenged assessment orders based on deceased husband's business, petitioner's liability for tax after husband's death, respondent's contention on non est in law, petitioner's response on business continuation, court's decision to set aside orders and remit for fresh assessment.

Analysis:
The petitioner contested assessment orders related to GST for multiple years following her husband's demise, claiming she is not liable for the tax as she is not continuing his business. The respondent argued that the petitioner's response on the business's letterhead implied her involvement, countering the petitioner's stance. The court, after hearing both parties, decided to nullify the orders and send the cases back to the respondent for reevaluation based on fresh replies from the petitioner. The court instructed the petitioner to clarify why certain GST provisions do not apply and respond within 30 days. The respondent was directed to issue new orders within three months considering the cancellation of registration and granting the petitioner a hearing opportunity.

This comprehensive judgment addressed the complexities surrounding the petitioner's tax liability post her husband's passing, emphasizing the importance of proper documentation and legal interpretation in tax matters. The court's decision to allow the writ petitions and order a reevaluation underscores the significance of due process and accurate representation in tax assessments. The directive for the petitioner to provide a consolidated response within a specified timeframe and the respondent to issue fresh orders within a stipulated period highlights the procedural fairness and adherence to legal principles in resolving tax disputes. The judgment showcases the court's commitment to ensuring a just and lawful outcome by setting aside the previous orders and facilitating a thorough reassessment based on clarified information and statutory provisions.