By Vijay Kumar

The glories of our blood and state
Are shadows, not substantial things;
There is no armour against Fate;
Death lays his icy hand on kings:
Sceptre and Crown Must tumble down,
And in the dust be equal made
With the poor crooked scythe and spade.

Some men with swords may reap the field,
And plant fresh laurels where they kill:
But their strong nerves at last must yield;
They tame but one another still:
Early or late
They stoop to fate,
And must give up their murmuring breath
When they, pale captives, creep to death.

The garlands wither on your brow;
Then boast no more your mighty deeds!
Upon Death's purple altar now
See where the victor-victim bleeds.
Your heads must come To the cold tomb:
Only the actions of the just
Smell sweet and blossom in their dust.

If death lays his icy hand on kings, GST can haunt even the dead as this story would reveal.

There lived a businessman by name Radhakrishnan Pillai who was running a business concern under the name and style of 'M/s.Chothi Enterprises' at Anakarai, Kulapuram, Kanyakumari District and who tragically died on 11.10.2017 under mysterious circumstances.

However, the GST officer issued Show a Cause Notice under Section 73(1) of the GST Act, 2017 on 29.09.2023 in the name of the deceased dealer Mr. Radhakrishnan Pillai – about six years after his death. The Show Cause Notice was followed by an Adjudication Order dated 29.12.2023.

Radhakrishnan Pillai's legal heirs/legal representatives, his wife, R. Sujatha, his mother Nalinakshi Amma and son Unnikrishnan are before the Madurai Bench of the Madras High Court challenging the impugned order dated 29.12.2023 passed by the GST Officer and prayed for a direction not to proceed further with recovery proceedings pursuant to the impugned order.

The case of the petitioner is that although the petitioner and other members of the family are the legal heirs/legal representatives of the deceased dealer Mr. Radhakrishnan Pillai, they are not carrying on the business carried on by the deceased Mr. Radhakrishnan Pillai. It is submitted that the impugned order dated 29.12.2023 confirming the demand proposed in the Show Cause Notice dated 29.09.2023 is non-est in law as it has been passed against the dead person.

This Writ Petition is opposed by both the Central Government Standing Counsel and the State Counsel stating that:

1. There was no proper intimation about the death of the dealer Mr. Radhakrishnan Pillai.

2. Neither the petitioner nor his family members have responded to the Show Cause Notice.

3. The petitioner has stated that they have orally informed the officers about the death of the dealer telephonically.

4. It is therefore submitted that there is no merit in the challenge to the impugned order.

The High Court observed: 2024-TIOL-1291-HC-MAD-GST

1. There is no dispute that the dealer Mr. Radhakrishnan Pillai has died on 11.10.2017 and that the petitioner is one of his legal heirs/legal representatives along with his mother R. Sujatha aged about 62 years, his sister Sreelekshmi aged about 33 years and his grand-mother Nalinakshi Amma aged about 84 years.

2. The order that has been passed against the dead person is non-est in law. If the petitioner is carrying on the business of the deceased person, then, the remedy is available to the Department to proceed against the petitioner under Section 93 of the GST Act, 2017.

3. It appears to be that the petitioner is not carrying on the business of the deceased person.

4. Be that as it may, since the impugned order has been passed against the dead person, the impugned order is quashed.

The High Court directed the GST Authorities to issue a common notice to the petitioner representing the interest of the other legal heirs/legal representatives of the deceased dealer Mr. Radhakrishnan Pillai, within a period of 30 days from the date of receipt of a copy of the order and thereafter proceed in the manner known to law, in case the petitioner is carrying on the business of the deceased dealer Mr. Radhakrishnan Pillai.

The Government has argued in the Court that there was no proper intimation about the death of the dealer Mr. Radhakrishnan Pillai. What is a proper intimation? Is there any form for it? Should it be filed online? Who should file the proper intimation and who is the proper officer to receive the proper intimation? Should all the heirs file the proper intimation? Should the proper intimation be accompanied by death certificate, legal heir certificate, copy of GST registration certificate, Aadhaar, PAN? Can those who give such proper intimation be summoned by GST authorities for further investigations? Is telephonic intimation not a proper intimation? On getting the telephonic intimation, couldn't the GST department use its super sleuths to find out if the person is really dead?

Is a GST assessee contemplating death required to inform the department that in the most likely event of his death before he is able to collect that precious notice from the Department, the notice may be sent to the following persons?

And what happens if the order against the dead person is not complied with? Can the GST authorities enforce it against the legal heirs? Obviously, the legal heirs felt the heat making them run to the High Court. After driving such unfortunate people to the High Court, pleading for justice against the haunting presence of tax authorities pursuing the dead, the Government should have gracefully conceded that it was wrong to pass an adjudication order against a dead person. After all, how can an order be enforced against one who no longer walks the earth? What is an order against someone who could neither respond nor defend himself. This saga serves as a stark reminder that even in matters of death, the spectre of taxes doesn't fade quietly. It beckons regulators to reconsider the complexities of their systems-maybe even teach them that the deceased are devoid of earthly obligations. In this curious tale of life, death, and taxes, Radhakrishnan Pillai's legacy lives on, reminding us that the red tape of bureaucracy can sometimes stretch even beyond the grave.

Can the Government teach the learned officers that notices and orders to the dead assesses are not live, nor lively. Catch them if you can - when they are still alive.

Until next week