Bilaspur: The High Court has made it clear that after the death of the owner of a proprietorship firm, the old service tax cannot be recovered from his legal heirs.

The court quashed recovery and garnishee notices issued against the deceased businessman's wife and bank accounts. The High Court held that the accounts or assets of a deceased taxpayer's heirs cannot be attached solely to recover old taxes

The case involves Devan Anisha, a resident of Risali, Bhilai. Her husband, Mahendran Rupesh Naidu, ran a proprietorship firm. The department imposed a service tax of ₹10.74 lakh and a penalty of the same amount for the 2013-14 fiscal year.

After the taxpayer's death in 2023, the department issued a recovery notice against his wife and bank accounts. Citing the Supreme Court's Shabina Abraham decision, the High Court held the notice to be legally invalid and quashed it in its entirety.