Authority: Orissa High Court, Cuttack

Order Date: 22 July 2026

Case Overview

  • Parties: Petitioner – M/s. J.S. Enterprisers represented by legal heir Jyoti Ranjan Mohapatra; Opposite parties – Superintendent Central GST, Cuttack‑I and Assistant Commissioner Central GST & Central Excise, Cuttack‑I.
  • Background: The proprietor of M/s. J.S. Enterprisers, Late Manoranjan Mohapatra, died on 24‑Nov‑2022. The business continued under the same GSTIN (21AGEPM8738K1Z5) by the legal heir and later as a partnership firm (GSTIN 21ABWFM0651L1Z0) from 25‑Jan‑2023. A non‑core amendment on 20‑Jun‑2023 allowed the deceased’s GSTIN to continue with legal name “Manoranjan Mohapatra” and trade name “M/s. J.S. Enterprisers”.
  • GST Demand: For FY 2021‑22, the total tax liability discharged was Rs.2,97,20,836.79. The Assistant Commissioner issued Show Cause Notice (Form GST DRC‑01) on 26‑Sep‑2025 (Ref. ZD210925039360M) and a Demand‑cum‑Show Cause Notice on 25‑Sep‑2025 (Ref. ZD210925001298J) in the name of the deceased proprietor.
  • Procedural History: The petitioner filed reply on 30‑Sep‑2025. The Superintendent dropped the allegation on 29‑Dec‑2025 (Order‑in‑Original No. SUPDT/CTC‑III/GST/135/2025). The Assistant Commissioner, however, proceeded and passed Order‑in‑Original No. AC/CTC‑I/GST‑69/2025 on 29‑Dec‑2025, treating the deceased as the assessee.
  • Legal Contentions: Petitioners argued that proceedings under Section 73 cannot be initiated against a dead person and that the authority, aware of the death, violated natural justice by not issuing notice to the legal heir. Opposite counsel relied on Section 93 of the CGST Act, asserting liability of the legal heir for tax, interest, or penalty.
  • Judicial Precedents Cited: The Court referred to Savita Kapila v. CIT, Kanakalata Senapati v. Assistant Commissioner of GST, Devendra Kumar Singh v. State of U.P., and other GST‑LIT judgments emphasizing that assessment against a deceased person is void if notice is not served to the correct person.

Final Outcome

  • The High Court held that the Show Cause Notice and the Order‑in‑Original dated 29‑Dec‑2025 issued against the deceased proprietor are non est and therefore quashed.
  • The Court directed that the proper officer may re‑initiate appropriate proceedings by issuing notice to the legal heir (Jyoti Ranjan Mohapatra), but the existing order is set aside.
  • All interlocutory applications, if any, are deemed disposed of.

Topics: GST Litigation, Legal Heir Rights