2009 (5) TMI 887 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to order of assessment under Orissa Value Added Tax Act, 2004 based on jurisdiction of assessing authority.

Analysis:
The petitioner, a registered dealer under the Orissa Value Added Tax Act, 2004, contested the assessment order dated April 21, 2007, issued by the Sales Tax Officer, Bhanjanagar Circle, Bhanjanagar. The challenge was primarily on the grounds that the assessment should have been conducted by the assessing authority of the range as per rule 34(12)(b) of the OVAT Rules, not by the Sales Tax Officer. The petitioner argued that the Sales Tax Officer did not have the jurisdiction to conduct the assessment, as per the relevant provisions of the Act and Rules.

The key contention revolved around the interpretation of rule 34(12)(b) of the Orissa Value Added Tax Rules, 2005. The rule stipulates that dealers granted registration under the OVAT Act/Rules and assigned with TIN numbers must be assessed by the "assessing authority of the range." The High Court analyzed the impugned assessment order, which was issued by the Sales Tax Officer, and concluded that it did not comply with the requirement of being conducted by the assessing authority of the range, as mandated by rule 34(12)(b). Therefore, the Court held that the assessment order lacked jurisdiction and could not withstand judicial scrutiny.

In the judgment, the High Court directed the petitioner to appear before the Assistant Commissioner of Sales Tax, Cuttack II Range, for further proceedings in accordance with the law. Additionally, the Sales Tax Officer, Bhanjanagar Circle, was instructed to transfer the records of the assessee to the designated assessing authority of the range. Consequently, the Court disposed of the writ petition, setting aside the assessment order issued by the Sales Tax Officer due to lack of jurisdiction and non-conformity with the relevant rule.

Overall, the judgment emphasized the importance of adherence to statutory provisions regarding the jurisdiction of assessing authorities under the Orissa Value Added Tax Act, 2004, and highlighted the significance of ensuring assessments are conducted by the appropriate authority as prescribed by law.