ALLAHABAD HIGH COURT: DEPARTMENT REQUIRED TO SERVE NOTICE UPON LEGAL REPRESENTATIVE OF DECEASED BEFORE PROCEEDING UNDER GST ACT

The Allahabad High Court in the case Mrs Lalitha Subramanian v. Union Of India And3Others observed and has held that the Goods and Service Tax Department is being required to serve notice upon the legal representative of a deceased before proceeding against the deceased as stated under the Central Goods and Service Tax Act, 2017.

In the present case, the petitioner husband being the sole proprietor of the firm who was engaged in providing services as a consultant. The court issued the show cause notice in the name of petitioner's husband imposing liability for an amount of Rs.8,97,716/- under the proviso to Section 73(1) of the Finance Act, 1994 reading with section 142, section 173, section 174 of the CGST Act towards Service Tax for the Financial Year 2014-15 along with equivalent penalty and interest thereon.

Therefore, the penalty order was being passed where further penalty for an amount of Rs.10,000/- was imposed under Section 71(1)(c) of the Finance Act, 1994 read with Sections 142, 173, 174 of the CGST Act.