SCN issued after death of proprietor is bad in law

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CESTAT, NEW DELHI BENCH

Commissioner of Central Excise, Chandigarh

v.

Shree Ambica Steel Industries

FINAL ORDER NO. A/1168/2012-EX (BR)

APPEAL NO. E/1501 OF 2012

SEPTEMBER 13, 2012

 

Undisputedly, late Smt. Bimla Rani was the proprietor of the respondent firm M/s Shree Ambica Steel Industries. She died on 17.9.2006 and after her death the legal heir applied for cancellation of Excise registration in the name of the firm and the registration was admittedly cancelled by the Department in October, 2006. It is well settled that a sole proprietorship concerned has no legal entity independent of its proprietor. Thus it is obvious that the death of late Smt. Bimla Rani of the respondent company ceased to exist. That being the case, the relevant show cause notice dated 2.4.2009 issued to M/s Shree Ambica Steel Industries, Mandi Gobindgarh is bad in law as it was issued against any non-existent firm. This circumstance in itself is sufficient to dismiss the appeal filed by the Department.