By TIOL News Service

MUMBAI, MAY 08, 2017: THE issue involved is whether deceased should be issued a show-cause notice and a proceeding under that show-cause notice is legal and correct or otherwise.

The present appeal is filed by Ms. Neeta R. Shewale on behalf of proprietorship concern.

Ramesh R. Shewale , the proprietor filed declaration under VCES and paid the 50% of the declared amount in December 2013. He died on 02.01.2014 and the remaining 50% of the declared amount was also paid by his wife Neeta R. Shewale in June 2014 .

It is the submission of the appellant that since the proprietor died on 02.01.2014,SCN should not have been issued on 15.12.2014 to the deceased person. And, therefore, the entire proceedings of the show-cause notice stands vitiated. Reliance is placed on the decisions in D Matai - 2002-TIOL-477-CESTAT-DEL & Vira & Co - 2011-TIOL-1430-CESTAT-MUM.

Noting the facts, the Bench observed that there is no provision under the CEA and Rules made thereunder to issue a show-cause notice to a dead person.

Extracting extensively from the cited judgments, the CESTAT concluded that as per the settled legal position, the show-cause notice issued to the proprietary concern is ab initio illegal and the proceedings flowing from the same is also vitiated.

The impugned order was set aside and the appeal was allowed.

(See 2017-TIOL-1533-CESTAT-MUM )