9911796707
TMI Blog2006 (3) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness premises was inspected by the Intelligence Squad of Sales Tax Department on November 5, 1998 and shop inspection report was prepared. Even though the notice was issued for production of books of account during lifetime of the petitioner's father, he did not produce the books of account. The petitioner's father died on March 9, 1999, and thereafter notice was issued in the name of the business concern calling for books of account to compare the same with the data gathered during shop inspection and recorded in the shop inspection report. It is clear from exhibit P1 that in spite of notice issued earlier, books were not produced either by the registered dealer or by the legal heir, namely, the petitioner who succeeded to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness with father's registration. However, so far as exhibit P1 is concerned, there is no need to consider whether business is continued by the petitioner after death of his father, or whether the petitioner closed down the business. It is clear from exhibit P1 that the shop was inspected during the lifetime of the petitioner's father on January 5, 1998 and shop inspection report was prepared containing physical stock noticed on inspection, books of account found, etc. By exhibit P1, the first respondent has only called for the accounts from the petitioner's father during his lifetime and on account of his failure and after his death from the successor, namely, the petitioner, to produce the books of account for verification of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on by this court. The decisions referred to by the petitioner are not directly on the point, and most of the decisions deal with the circumstances in which penalty can be levied. The last case referred to by the petitioner relates to levy of penalty for non-filing of wealth-tax return by the assessee during his lifetime, and therefore has no application to the facts of this case. The relevant provision of the KGST Act pertaining to the situation after the death of the assessee is contained in section 20 of the KGST Act and rule 49 of the KGST Rules, which are similar in substance. Therefore, reference to the relevant section is sufficient and for easy reference section 20 is extracted hereinbelow: 20. Assessment of legal representatives ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the Act which is normally based on adjudication by the concerned officer. The amount can be recovered by attachment and sale of assets of the dealer held by legal heirs, if on demand they refuse to remit the same. However, there may be proceedings pending at the time of death of the dealer. The death of the assessee does not lead to end of proceedings initiated against him. Even after the death of the dealer, it is the duty of the assessing officer to complete the assessment or any other proceeding pending against the dealer as on the date of his death and by virtue of section 20, the assessing officer or any other authority under the statute is bound to issue notice to hear legal heirs and complete adjudication before any demand is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the lifetime of the petitioner's father, he made unaccounted purchases or sales and practised evasion of tax which will be proved when book figures are verified and compared with the physical stock recorded during shop verification, then penalty can be levied on the petitioner, only as legal heir after giving opportunity to the petitioner to demonstrate that there was no evasion. However, as already stated, liability is not personal liability of the petitioner or any other legal heir but will be a charge on the assets inherited or obtained by the petitioner and other legal heirs from the deceased dealer. In the circumstances, and by virtue of fiction available in section 20 of the KGST Act, all proceedings for assessment, or fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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