Legal Updates 25 July 2026
Tax Recovery Quashed
The Chhattisgarh High Court has quashed the service tax recovery from the widow of a deceased proprietor, relying on a Supreme Court ruling, the decision is based on the principle that a deceased person's business cannot be continued by their legal heirs, the court stated that the business of a sole proprietorship comes to an end with the death of the proprietor
The Chhattisgarh High Court has *quashed* the service tax recovery from the widow of a deceased proprietor. The court relied on the Supreme Court's landmark ruling in Shabina Abraham. Key points of the decision include:
- The business of a sole proprietorship comes to an end with the death of the proprietor
- The legal heirs of the deceased proprietor cannot continue the business
- The service tax recovery is therefore *invalid*
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