Commissioner of CGST and Central Excise,Howrah Commissionerate Vs Ashirwad Foundaries Private Limited and another
Date-30th June 2022
Forum-Calcutta High court
Sub-Whether central excise can move against legal heirs of a deceased person to recover the penalty imposed under the Act.

The Division bench of Calcutta High Court in this case was dealing with an important matter where the Department filed an application before the Hon’ble Division bench for substituting the name of the legal heirs of the respondent assessee in the Appeal which was filed by it against the order of CESTAT which had given relief to the assessee by allowing the appeal relating to imposition of penalty on director of the company when the offence was alleged to have been committed by the company. The assessee’s counsel argued that there was no provision in the Central Excise Act to proceed against a dead person when it comes to continuing proceeding under the Act in a situation like this. The division bench rejecting the department’s appeal in view of the decision of the Supreme Court in the case of SHABINA ABRAHAM AND OTHERS Versus COLLECTOR OF CENTRAL EXCISE AND CUSTOMS; (2015) 10 SCC 770(SC) granted relief to the assessee by not allowing substitution of the name of the legal heirs.

This is a very important judgement in relation to the indirect taxes which is unlike the Income-tax Act where specific provisions are contained in Chapter XV dealing with liability in special cases and where legal heirs are made liable for the liability of a deceased person to the extent of the assets of the deceased person.

Ramesh Patodia
10-01-2023