Bombay High Court Mandates Fresh Adjudication in GST Recovery Initiated Against Legal Heir Post Assessee's Demise

The adjudication of tax liabilities following the demise of an assessee remains a highly litigated domain within indirect tax jurisprudence. Recently, the Hon'ble Bombay High Court delivered a crucial directive in the matter of Vinay Hiroo Thadani Vs Deputy Commissioner of CGST and Central Excise & Ors., addressing the procedural validity of tax recovery actions launched against the legal heir of a deceased assessee under the Central Goods and Services Tax Act, 2017.

This judicial summary provides a comprehensive analysis of the High Court's observations, the legal framework surrounding the liability of legal representatives, and the imperative of upholding the principles of natural justice during statutory proceedings.

Factual Matrix of the Dispute

The controversy originated from aggressive tax recovery measures initiated by the GST department against the petitioner, who is the son of the late Mr. Hiroo Jethanand Thadani. The sequence of events that led to the constitutional writ petition is outlined below: