Friday, October 3, 2025

GST / Indirect Tax : HC Quashes the SCN and the Order passed under S.74 of GST Act, 2017

GST / Indirect Tax : HC Quashes the SCN and the Order passed under S.74 of GST Act, 2017

It was held in Shubhangi Gupta v. State of UP [2025] GCtR 1570 (Allahabad) in context of S.74 of UP GST Act, 2017 that it is inherent that proceedings cannot be initiated against a person who is deceased. Thus, proceedings cannot be initiated against the legal heirs of the deceased or against the estate of the deceased. However, it was open to the authorities to proceed in proper manner against the legal representative/heirs of the deceased proprietor and having failed to do so, the entire proceedings initiated from the stage of show cause notice is bad in law. 

In this case, the proceedings under S.74 of UP GST Act, 2017 were quashed.

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