Gujarat High Court sets aside GST demand raised posthumously against deceased assessee

Background of the dispute

The matter before the Gujarat High Court in Smt. Gulabben Gopaldas Jamvecha Vs State of Gujarat revolved around GST recovery proceedings that were initiated and concluded entirely in the name of an assessee who had already passed away.

The writ petitioner, Smt. Gulabben Gopaldas Jamvecha, is a 72‑year‑old senior citizen and widow of late Shri Gopaldas Jaisukhlal Jamvecha, who had been the sole proprietor of a concern named M/s. Patel Timbers. The business was registered under the GST regime, and late Shri Jamvecha had himself moved for cancellation of the GST registration.

Pursuant to this application, the jurisdictional authorities passed an order on 06.05.2019 cancelling the GST registration of M/s. Patel Timbers with effect from 31.03.2019. In this cancellation order, the column reflecting “amount payable on cancellation” specifically showed the figure as “0”, indicating that, at the stage of cancellation, no tax or other dues were recorded as outstanding.

Subsequently, Shri Gopaldas Jamvecha died on 01.08.2019. Several years later, the Department initiated proceedings alleging past dues under the GST law.

Chronology of subsequent GST actions

Despite the demise of the original proprietor, the following steps were taken by the State GST authorities:

  1. Issuance of Form GST DRC‑01 (Show Cause Notice)

    • Around four years after the death of Shri Jamvecha, the Department issued a notice in Form GST DRC‑01, proposing a demand of ₹5,94,928.
    • This form, which operates as a show cause notice in summary form, was issued in the name of the deceased proprietor.

  2. Order under Section 73 of the State GST Act, 2017

    • On 19.12.2023, an order purportedly under Section 73 of the State GST Act, 2017 was passed in Form GST DRC‑01, culminating in an aggregate tax demand of ₹6,06,026.
    • This order too was issued against the late Shri Gopaldas Jamvecha.

  3. Issuance of Form GST DRC‑07 (Summary of Order)

    • On the same date, 19.12.2023, a consequential order in Form GST DRC‑07 was generated, thereby crystallizing the demand and enabling recovery proceedings.
    • Further recovery measures, including freezing of bank account, followed.

All these steps – from SCN to assessment to recovery – were addressed not to the legal heir, but to the deceased assessee himself.

Personal circumstances

The petitioner highlighted that:

  • She is a senior citizen and a housewife.
  • She was never involved in the business operations of M/s. Patel Timbers.
  • She had no working knowledge of the GST framework or procedural aspects.
  • She only became aware of the departmental actions after being contacted by the authorities.

Contention regarding proceedings against a deceased person

The primary thrust of the petitioner’s challenge was:

  • The entire set of notices and orders, including the show cause notice and order under Section 73, had been issued in the name of a person who was no longer alive.
  • Any proceedings carried out in the name of a deceased assessee are inherently void and unenforceable.

Approach to the Department

Once the petitioner was contacted, she was informed telephonically by the Department that: