GST Assessment Order Against Deceased Proprietor Declared Non Est in Law: Madras High Court
Case Overview
Case Name: Rekha.S Vs Assistant Commissioner (ST)
Court: Madras High Court
Nature of Proceeding: Writ Petition challenging assessment order dated 01.03.2023
The Madras High Court recently delivered a significant ruling on the validity of GST assessment proceedings initiated against a deceased individual. The Court unequivocally held that an assessment order passed against a dead person is non est in law — meaning it has no legal existence whatsoever — and accordingly set aside the impugned order.
Background Facts
The writ petition was filed by the legal heirs of the late M.K. Girish, who during his lifetime operated a proprietorship concern under the trade name "M/s. M.K.M. & Sons." The following sequence of events led to the dispute:
- 25.02.2021 — M.K. Girish, the proprietor, passed away.
- 29.06.2022 — The legal heirs formally intimated the respondent authority about the proprietor's death through an online application.
- 06.07.2022 — Despite being aware of the death, the respondent issued GST DRC-01A in the name of the deceased.
- 21.11.2022 — The respondent further issued GST DRC-01 again in the name of the deceased person.
- 01.03.2023 — The respondent proceeded to pass a final assessment order against the deceased.
The petitioners — being the surviving legal heirs and representing the estate of M.K. Girish — challenged the assessment order dated 01.03.2023 before the Madras High Court, contending that initiating and completing proceedings against a dead person was fundamentally flawed and void in the eyes of law.
Legal Contentions Raised
On Behalf of the Petitioners
The counsel appearing for the legal heirs argued that:
- The proprietor M.K. Girish had already passed away on 25.02.2021, well before the issuance of any notice or assessment order.
- The respondent had been duly intimated of the death through a formal online communication on 29.06.2022.
- Despite this intimation, both GST DRC-01A and GST DRC-01 were issued in the name of the deceased, and the assessment order dated 01.03.2023 was subsequently passed against him.
- Since the entire proceedings — from notices to final order — were directed at a person who was no longer alive, the assessment order was legally void and liable to be set aside.
On Behalf of the Respondent
The learned Additional Government Pleader appearing for the respondent:
- Fairly conceded that both notices — GST DRC-01A dated 06.07.2022 and GST DRC-01 dated 21.11.2022 — had indeed been issued against the deceased person.
- Suggested a pragmatic solution: that the notices be treated as having been issued to the legal heirs of M.K. Girish, thereby enabling the petitioners to file a reply, following which fresh orders could be passed after granting adequate opportunity of personal hearing.