TMI Blog2021 (6) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... ME COURT] where it was held that in case of death of the proprietor of the firm, no liability can be fastened on the legal heir for the period till the lifetime of the proprietor. No demand of service tax can be fastened on the son of late Shri Kuldeep Singh for the period October 2009 to February 2014 - the impugned order is modified that the revenue shall determine the liability of the appellant firm w.e.f. 01.03.2014 - Appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 61380 Of 2019 - A/60856/2021 - Dated:- 14-6-2021 - MR. ASHOK JINDAL, MEMBER (JUDICIAL) Shri Naveen Bindal, Advocate for the Appellant Shri H. S. Brar, Authorised Representative for the Respondent ORDER The appellant is in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ina Abraham vs. Collector of Central Excise and Customs 2017 (50) STR 241 (S.C.) to say that as the proprietor of the firm has been expired, therefore, till then, he was the proprietor of the firm. There is no provision under The Finance Act, 1994 or Central Excise Act, 1944 for recovery of the dues of lifetime of the deceased proprietor, therefore, the demand for the period 0f lifetime of Late Sh. Kuldeep Singh is not sustainable. 4. On the other hand, the Ld. AR opposed the contention of the Ld. Counsel and submits that as the business of Shri Kuldeep Singh was taken over by his son who has filed an undertaking before the department of the liability of lifetime of his father, therefore, he is liable to pay service tax for the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lements and articles in the custody or possession Of the person so succeeding may also be attached and sold by such officer empowered by the Central Board Of Excise and Customs, after obtaining written approved from the Commissioner of Central Excise, for the purposes of recovering such duty or other sums recoverable or due from such predecessor at the time of such transfer or otherwise disposed of change. 8. On going through the said provision, it is very much clear that in case of transfer or otherwise disposal of the business, in such circumstances, only the successor is liable to pay the dues. There is no provision in law till yet in case of death of the proprietor of the firm who will be liable to pay the dues thereof. The said i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (42) of the said Act defines person as under :- (42) Person shall include any company or association or body of individuals whether incorporated or not. It will be noticed that this definition does not take us any further as it does not include legal representatives of persons who are since deceased. Equally, Section 6 of the Central Excises Act, which prescribes a procedure for registration of certain persons who are engaged in the process of production or manufacture of any specified goods mentioned in the schedule to the said Act does not throw any light on the question at hand as it says nothing about how a dead person s assessment is to continue after his death in respect of excise duty that may have escaped assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, legal heirs who are not the persons chargeable to duty under the Act cannot be brought within the ambit of the Act by stretching its provisions. To the extent that this judgment holds what is set out hereinbelow, it is correct:- We do not find any provision in the Act which foists any such liability in the case of intestate succession. In other words, there is no provision which empowers the authorities to recover due from a deceased assessee by proceeding against his legal heirs. The way Section 11 and 11A are worded, it is amply clear, the legislature has consciously kept away the legal heirs from answering to liabilities under the Act. (at page 69) 31 . The impugned judgment in the present case has referred to Ellis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can simply adhere to the words of the statute . and thereafter the Hon ble Apex Court has held that in case of death of the proprietor of the firm, no liability can be fastened on the legal heir for the period till the lifetime of the proprietor. 9. In view of this, I hold that no demand of service tax can be fastened on the son of late Shri Kuldeep Singh for the period October 2009 to February 2014. Accordingly, the issue is answered in favour of the appellant. 10. In view of the above discussion, the impugned order is modified that the revenue shall determine the liability of the appellant firm w.e.f. 01.03.2014 in terms of the decision of this Tribunal in the case of Blue Star Communication (supra). 11. The appeal is dispo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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