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TMI Blog2016 (4) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... t the background facts. 2. Pursuant to the above order, an affidavit has been filed by Mr S. S. Yadav, Commissioner, Value Added Tax (CVAT). He has enclosed with the affidavit a copy of the inquiry report prepared by him on 10th March, 2016. Inter alia, the conclusions reached by him on examination of the officers concerned with the case of survey of the Petitioner and examination of the records read as under: "(i) No file was created in the department in the matter of survey and sealing of three premises of M/s L&T Limited on 15.3.2013. The decision was taken based on the study of profile and past history of the company in the computer system after verbal discussion by the officers concerned. The files were not created before such survey ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued in any case. The matter was discussed in a meeting chaired by the Commissioner on 23.9.2014 and the authorization was issued subsequently vide order dated 15.10.2014." 3. With the assistance of Mr Sudhir Nandrajog, learned Senior counsel appearing for the Respondent, the Court has perused the above report of the CVAT. The Court is constrained to observe that the report gives rise to more questions than it answers. In particular, it is silent on one aspect highlighted in para 8 of the order passed by the Court on 3rd February 2016. This concerns the file in this case which, as was stated by Mr P. R. Meena, Special Commissioner (Special Zone), Department of Trade & Taxes, Government of NCT of Delhi in his additional affidavit dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egal basis for the deployment order dated 15th March 2013, a copy of which has been enclosed to this report as Annexure-1. It has been issued by the Joint Commissioner (Special Zone) authorizing officers even below the rank of Value Added Tax Officer (VATO) to undertake the survey of the premises of the Petitioner. While, the CVAT's report in para 9 mentions the general order of delegation dated 31st October 2005 issued by the CVAT in exercise of his powers under Section 68 of the DVAT Act, the report fails to notice that by the said order, the powers under Section 60(2) of the DVAT Act were delegated to officers of the rank of VATO and above to be exercised "within their respective jurisdiction". This has been explained by the Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rendered the order dated 15th October 2014 invalid, what is stark is that it seeks to validate all actions taken by the officers of the DT&T of a rank below the VATO between 1st April, 2015 and 28th August 2015 during which period obviously there was no such authorization in their favour. 10. The Court has mentioned the above details only to draw the attention of the CVAT to the egregious violations of the law. This has resulted from a lack of application of mind by officers at the highest level to the need for proper authorization of the officers of the DT&T strictly in terms of the DVAT Act. Mr. Jain appears justified in expressing the concern that the lack of authority of the officers carrying out survey operations and sealing operatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s by itself t is sufficient for the Court to proceed to award exemplary costs in favour of the Petitioner since there could be no manner of doubt that there was a plain abuse of the process of law by the officers concerned of the DT&T. However, since the case must be taken to its logical end and cannot be closed at this stage, the Court is again constrained to defer orders in this regard till such time there is a report of compliance from Mr S. S. Yadav, CVAT. The file of the inquiry which includes the statements stated to have been made by the officers before the CVAT, which he refers to in his report, should be kept ready for perusal of the Court on the next date of hearing. 13. The further supplementary report of the CVAT Mr Yadav be fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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