The Hon’ble Madras High Court in the case of V. Damayanti v. The Superintendent of GST and Central Excise [W.P.(MD) No. 10000 of 2026 dated June 16, 2026] dismissed the writ petition filed by the legal heir of the deceased proprietor and upheld the demand initiated under Section 74 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) after the death of the taxable person. The Court held that even in a case where the business of the deceased taxable person has been discontinued and no show cause notice or assessment proceedings had been initiated during his lifetime, fresh proceedings may nevertheless be initiated against the legal heir under Sections 73, 74 or 74A of the CGST Act, in view of Section 93 of the CGST Act. However, in cases of discontinued businesses, the liability of the legal heir shall remain restricted to the extent of the estate inherited by him.
