UPVAT Act | Family Entitled To Insurance Money Under Group Insurance Policy If Registration Valid On Date Of Death Of Registered Dealer: Allahabad HC

The Allahabad High Court held that if registration under the Uttar Pradesh Value Added Tax Act, 2008 was subsisting on the day of his death, his family would be entitled to insurance claim under the Group Insurance Policy.

The bench comprising of Justices Saumitra Dayal Singh and Surendra Singh-I held

“If the deceased held a registration certificate prior to the occurrence of his death and that registration did not stand cancelled on the date of occurrence of his death, the status of the deceased would remain to be of a registered dealer for the purpose of Group Insurance Policy.”

Petitioner claimed that her deceased husband was a registered dealer under the UPVAT Act and his registration was continuing on the date of his death. Accordingly, petitioner raised a claim of insurance of Rs. 5,00,000/- payable to her in terms of the Group Insurance Policy purchased by the State Government for the benefit of such registered dealer, under Circular dated 30.03.2013 issued by the Commissioner, Commercial Tax, U.P., Lucknow.

Per contra, State contended that application for cancellation of registration was moved by the deceased prior to his death and the same was processed also. The order, however, was uploaded post his demise. However, disputing the aforesaid fact, petitioner contended that the registration was surrendered post the demise of her husband. Accordingly, her husband was a registered dealer on the date of his death.

While granted relief to the wife of the deceased dealer registered under Uttar Pradesh Value Added Tax Act, 2008, the Court observed that the respondent-authorities misdirected themselves by not looking at the application for cancellation of registration moved by the deceased dealer, without considering the fact of the pre-existing registration, that stood in the name of the deceased.

The Court remanded the matter to the authorities to consider the case in light of the application for cancellation of registration. Further, the Court observed that if it is found that registration was subsisting on the date of death of the dealer, insurance money shall be paid to the petitioner.

Case Title: Rina Rani Rustogi vs. State Of U.P. And 4 Others 2023 LiveLaw (AB) 408 [WRIT TAX No. - 1044 of 2018]

Citation: 2023 LiveLaw (AB) 408

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