No Tax Proceedings can be Initiated or Continued Against Dead Person: CESTAT [Read Order]

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), reiterated that no tax proceedings can be initiated or continued against a dead person.

M/s. K.V. Paints & Chemical Co, the respondent, has filed the refund claim of 4% Additional Duty of Customs in respect of Eighteen Bills of Entry in terms of Notification No.102/2007-Cus dated 14.09.2007 as amended by Notification No.93/2008 dated 01.08.2008 read with Board’s Circulars No.6/2008-Cus dated 28.04.2008 and 16/2008-Cus dated 13.10.2008.

The original refund sanctioning authority on scrutiny of the documents submitted by the responded, sanctioned the refund amount of Rs.20,82,736/- to the importer.

The Advocate Shobana Krishnan appearing for the respondent stated that the M/s. K.V. Paints & Chemicals Co., is a sole proprietorship concern and its sole proprietor is Kishan Chand Ohri, who died on 22.08.2019 and the Death Certificate issued by Government of Haryana, Municipal Corporation Gurugram has been submitted. Further, Directorate General of Foreign Trade’s IEC Registration of K.V. Paints & Chemicals Co., indicates that it is a sole proprietorship and the proprietor is Kishan Chand.

Rule 22 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982 states that where in any proceedings the appellant or applicant or a respondent dies or is adjudicated as an insolvent or in the case of a company, is being wound up, the appeal or application shall abate, unless an application is made for continuance of such proceedings by or against the successor-in-interest, the executor, administrator, receiver, liquidator or other legal representative of the appellant or applicant or respondent, as the case may be.

The Supreme Court in the case of Shabina Abraham & Ors. Vs. Collector of Central Excise & Customs, wherein it has been held that no proceedings can be initiated or continued against a dead person as it amounts to violation of natural justice in as much as the dead person, who is proceeded against is not alive to defend himself.

A Division Bench of the Tribunal comprising Vasa Seshagiri Rao, Technical Member and P Dinesha, Judicial Member observed that “We find the Respondent has died on 22.08.2019 during the pendency of the present appeal. We also find that in terms of Rule 22 of Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982 on the death of the Respondent, the proceedings will be abated unless an application is made for continuance of such proceedings. In this case no such application is made. As the Death has occurred on 22.08.2019, more than three and half years passed already.”

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