Decided 25 September 2026. The Delhi High Court has held that section 93 of the CGST Act allows tax, interest or penalty proceedings to be started after a person's death, not merely continued, against the legal representative, provided the statutory conditions are met. It also rejected a constitutional challenge to section 93(1)(b) but left all factual issues for appeal, and directed the department to account for ₹15.40 lakh it was holding.
Case at a glance
| Case | Jaiwanti v. Union of India & Ors. |
| Forum | Delhi High Court (Justice Anil Kshetarpal and Justice Vimal Kumar Yadav) |
| Case No. | W.P.(C) 7254/2025 |
| Date of judgment | 25 September 2026 |
| Key provision | Section 93 CGST Act |
| Result | Challenge to jurisdiction and vires rejected; liberty to appeal; directions on ₹15,40,000 |
Facts of the case
DGGI investigated alleged fraudulent ITC and IGST refunds. More than three years after the petitioner's husband died, an SCN dated 31.07.2024 was issued to her proposing penalties for acts allegedly committed by him, followed by an order.
She argued that proceedings cannot begin after death, challenged section 93(1)(b) as unconstitutional, and sought return of ₹15,40,000 retained by the department.
Issue before the High Court
Does section 93 allow proceedings to be commenced after death, or only completed if already started?
What the High Court held
- The words 'determined after his death' in section 93 permit proceedings to be commenced after death, provided the conditions in the provision are satisfied.
- The SCN was not without jurisdiction merely because it was issued after death, and the constitutional challenge to section 93(1)(b) failed. The lapse of three years is no bar under section 93, but limitation rules still apply.
- Whether the conditions of section 93(1)(b) are met, service, proof of contravention and computation were left open for appeal, which may be filed within four weeks without objection on limitation.
- The department must give a complete account of the ₹15,40,000, including fixed deposit interest and the legal basis for any retention, and pass a reasoned decision. Any amount without lawful basis must be released with interest earned.
Practical takeaways for taxpayers
- Legal heirs who receive GST notices for a deceased person's business should contest whether section 93's conditions are met and plead limitation, rather than only arguing that proceedings cannot start after death.
- Liability of legal heirs is generally limited to the estate; insist on that limit.
- Ask the department for a full account of amounts deposited during investigations.
Frequently asked questions
Can GST proceedings start after the taxpayer's death?
Yes, according to the Delhi High Court, if the conditions of section 93 are satisfied.
How does this differ from the AP High Court ruling?
The AP High Court set aside an order passed in the dead person's name; the Delhi High Court dealt with a notice issued to the legal heir herself.
Facing a similar GST dispute?
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This summary is based on the order of the Delhi High Court in W.P.(C) 7254/2025. It is general information, not legal advice; the outcome of any case depends on its own facts and the full text of the order.