Orissa High Court on GST demands raised against a deceased sole proprietor

The Orissa High Court in J.S. Enterprisers Vs Superintendent (Orissa High Court) examined whether proceedings under Section 73 of the Central Goods and Services Tax Act, 2017 and the Odisha Goods and Services Tax Act, 2017 could lawfully be initiated and completed in the name of a proprietor who had already died, despite the GST authorities having prior intimation of his death and the succession of his business.

The writ petition challenged:

  • Summary of Show Cause Notice in Form GST DRC-01 dated 26.09.2025
  • Related Demand-cum-Show Cause Notice dated 25.09.2025
  • Order dated 29.12.2025 along with Order-in-Original dated 29.12.2025

all issued under Section 73 read with Section 20 of the Integrated Goods and Services Tax Act, 2017, for Financial Year 2021-22 (period from 01.04.2021 to 31.03.2022), in the name of “Manoranjan Mohapatra”, the deceased proprietor of M/s. J.S. Enterprisers.

The assessee invoked the High Court’s writ jurisdiction under Articles 226 and 227 of the Constitution of India, primarily seeking quashing of these notices and orders as void and unenforceable.

Background facts and GST registrations

Original proprietorship concern

  • M/s. J.S. Enterprisers was originally run as a sole proprietorship by Sri Manoranjan Mohapatra.
  • The concern was registered under GST with GSTIN: 21AGEPM8738K1Z5, with:
    • Legal Name: “Manoranjan Mohapatra”
    • Trade Name: “M/s. J.S. Enterprisers”
  • The business was issuing and receiving e-invoices in terms of Notification No.88/2020-Central Tax, dated 10.11.2020, Section 31 of the GST Act and Rule 48(5) of the GST Rules.
  • Returns were filed regularly, with input tax credit (ITC) claims and tax payments duly disclosed.
  • For Financial Year 2021-22, total tax paid was reflected as Rs.2,97,20,836.79.

Death of the proprietor and subsequent business structure

  • Sri Manoranjan Mohapatra passed away on 24.11.2022.
  • His legal heirs decided:
    • To continue the existing business in the same name up to 31.03.2023; and
    • Thereafter to operate as a partnership firm using the same trade name.

New partnership registration

  • A partnership firm under the name “M/S. J.S. ENTERPRISERS” was constituted with partners:
    • Sri Chitta Ranjan Mohapatra
    • Sri Rashmi Ranjan Mohapatra
    • Sri Jyoti Ranjan Mohapatra
  • An application dated 25.01.2023 was filed for a fresh registration as a partnership firm.
  • GST registration was granted in Form GST REG-06 on 03.02.2023 with:
    • GSTIN: 21ABWFM0651L1Z0
    • Legal Name and Trade Name: “M/S. J.S. ENTERPRISERS”
    • Status: Partnership
    • Effective date: 25.01.2023
  • Separately, the legal heirs resolved to continue the original proprietorship registration GSTIN: 21AGEPM8738K1Z5 by allowing one legal heir, Sri Jyoti Ranjan Mohapatra, to run the business as legal heir of late Manoranjan Mohapatra.
  • A non-core amendment application was filed for this purpose and was approved on 20.06.2023 by the GST authorities.
  • After this approval:
    • Returns in Form GSTR-3B for April, May and June 2023 were filed
    • Legal Name continued as “Manoranjan Mohapatra”
    • Trade Name as “M/S. J.S. ENTERPRISERS”
    • GSTIN remained 21AGEPM8738K1Z5
    • Later, the filing for June 2023 reflected “Jyoti Mohapatra” as legal heir of the said proprietor.

The record, including Legal Heir Certificate (Annexure-4A), showed that the legal heirs of Late Manoranjan Mohapatra were:

  • Basanti Mohapatra (wife)
  • Salina Sahoo (daughter)
  • Rasmiranjan Mohapatra (son)
  • Jyotiranjan Mohapatra (son)

Initiation of GST scrutiny and show cause proceedings

Scrutiny under Section 61 and first notice

  • The Superintendent (opposite party No.1) scrutinized the returns under Section 61 of the GST Act.
  • A notice in Form GST ASMT-10 dated 28.05.2025 was issued under Rule 99 of the GST Rules in the name of “Manoranjan Mohapatra”.
  • By this time, the GST authorities had already been informed of his death (intimation dated 25.01.2023) and had processed subsequent registration changes, including the non-core amendment.
  • Because the notice appeared in the common GST portal in the name of the deceased, the legal heir (the petitioner) could not effectively respond to this Form GST ASMT-10 notice.

Demand-cum-Show Cause Notice and dual proceedings

Subsequently, two separate sets of proceedings were initiated:

  1. By the Superintendent (opposite party No.1)
    • Demand-cum-Show Cause Notice under Section 73 read with Rule 100(2) and Rule 142(1)(a) was issued vide Ref. No. ZD210925001298J dated 01.09.2025.
    • The petitioner, describing himself as “legal heir”, filed reply in Form GST DRC-06 on 30.09.2025.
    • Opposite party No.1 accepted the explanation and dropped the proceedings by passing Order-in-Original No. SUPDT/CTC-III/GST/135/2025 dated 29.12.2025.