Section 93 Permits Penalty Proceedings to Be Commenced After Death of Taxable Person — Constitutional Validity of Section 93(1)(b) Upheld: Delhi HC Delivers Authoritative Interpretation in First Reported CGST Act Ruling on Post-Death Determinations

The Delhi High Court has delivered the first reported comprehensive interpretation of Section 93 of the CGST Act, holding that the provision permits proceedings for determination of tax, interest or penalty to be commenced against the legal representative of a deceased person even after death, and that a Show Cause Notice during the deceased’s lifetime is not a condition precedent to such determination. The constitutional validity of Section 93(1)(b) was upheld against challenges under Article 14. The ruling by Justice Anil Kshetarpal and Justice Vimal Kumar Yadav in WP(C) 7254/2025 (Jaiwanti Dabas, decided 25.09.2026) arose from a penalty proposed against the widow of late Sh. Ankit Dabas — who died on 06.05.2021 — in connection with a DGGI investigation into alleged fraudulent ITC involving three entities.

The court rejected the contention that ‘is determined after his death’ should be read as meaning ‘is determined after his death in proceedings already commenced during his lifetime’, holding that the provision contains no such qualification and that its concluding words distinguish a liability determined before death from one determined thereafter. On constitutional validity, the court held that Section 93(1)(b) preserves liabilities attributable to the deceased’s conduct for lawful determination from his estate, with payment confined to the estate’s capacity to meet the charge; the underlying contravention and conditions of representative liability must still be established. The loss of the person with first-hand knowledge may affect the defence available, but Section 126(3) mandates an effective hearing and inability to give a personal account cannot be treated as an admission. On the merits, the court noted a fundamental inconsistency between clauses AD and AE of the OIO and relegated the petitioner to statutory appeal under Section 107 within four weeks. Separately, the court directed the Respondents to furnish a complete account of Rs. 15,40,000 cash seized during the deceased’s lifetime and establish a subsisting lawful basis for its retention.

- 2026-juristway.com-2663-HC(Delhi)-GST  |  High Court of Delhi  |  W.P.(C) 7254/2025  |  25.09.2026