2020 (1) TMI 1576 - SC - GST

Jurisdiction - appellant seeks to contend that the Officer who carries out an audit should not be the Officer who passes an assessment order - HELD THAT - In the absence of assistance from the respondent-department and taking into account the aforesaid pleas, as also the fact that in terms of the Order dated 27.09.2019, the matter is remitted back to the High Court except on the question whether the Audit Officer can also pass an assessment order or not, it is deemed appropriate to remit this issue also to the High Court. It is stated that the matter is to be listed on 21.5.2020 in the High Court. Appeal disposed off.

Summary

Issues:
1. Whether the Officer who conducts an audit can also pass an assessment order.
2. Interpretation of Circular dated 11.04.2016 issued by the respondent-Department regarding VAT Authorities' duties.
3. Remittal of the issue to the High Court for further consideration.

Analysis:
1. The appellant's counsel argued that the Officer conducting an audit should not be the same Officer passing an assessment order, citing judgments by the Delhi High Court. The Circular dated 11.04.2016 issued by the respondent-Department was referred to, emphasizing the need for officers to follow specific guidelines. The Circular mandates that officers preparing reports during audits must forward them to the concerned officer for assessment, thereby implying a separation of roles between audit and assessment.

2. The Supreme Court noted the absence of assistance from the respondent-department and considered the appellant's submissions along with the Circular's provisions. Given the previous remittance of the matter back to the High Court on a related question, the Supreme Court deemed it appropriate to also remit the issue of whether an Audit Officer can pass an assessment order back to the High Court for further examination. The matter is scheduled to be listed in the High Court for reconsideration.

3. Consequently, the appeals were disposed of by the Supreme Court, indicating a decision to remit the issue of the Audit Officer's authority to pass an assessment order to the High Court for clarification. The judgment reflects a nuanced analysis of the appellant's contentions, the Circular's directives, and the need for a definitive ruling on the separation of roles between audit and assessment functions within the VAT Authorities as per the DVAT Act, 2004.