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TMI Blog2022 (9) TMI 1274X X X X Extracts X X X X X X X X Extracts X X X X ..... dicial order, requiring a prior notice of hearing to the assessee and passing of a reasoned speaking order in individual cases of registered dealers for conducting audit by the specified Authority as directed by the Commissioner. Thus, it is clear from the above that under Section 64(4) of the Act, it does not empower the Commissioner to delegate the power and to pass orders to any lower authority and the Commissioner himself will have to pass orders. Appeal allowed. - W. A ( MD ) No. 1257 of 2013 and M. P. ( MD ) No. 1 of 2013 - - - Dated:- 21-9-2022 - THE HONOURABLE MRS. JUSTICE J. NISHA BANU And THE HONOURABLE MR. JUSTICE N. ANAND VENKATESH For the Appellant : Mr. S. Raja Jeya Chandra Paul For the Respondents : Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned Additional Advocate General appearing for the respondents. 5. The issue that has been raised in the present appeal is no longer res integra and the Division Bench of this Court has settled the issue in Joint Commissioner (CT), Chennai and others Vs. M/S. Original Vel Sporting News, Rep. by its Manager, Mr. Dinesh Kumar Soman in W.A.(MD) No.1757 of 2019 by order, dated 04.06.2019. The Division Bench was considering the scope of Section 64 (4) of TNVAT Act and it was held as follows : 8.Coming to the provisions of the Act itself, let us first quote Section 64, which deals with the Maintenance of upto date, true and correct Accounts and Records by the Dealers , particularly Sub-Section (4), thereof with which we are concerned in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tering authority. (3) Every registered dealer or person who moves goods in pursuance of a sale or purchase or otherwise from one place to another shall send along with the goods moved a bill of sale or delivery note or such other documents, as may be prescribed. (4) The Commissioner may order for audit of the business of any registered dealer by an officer not below the rank of [Deputy] Commercial Tax Officer. For the purpose of this section, the selection of dealers for audit shall be made from amongst the dealers,- (a) who have not filed returns within the prescribed period; or (b) who have claimed exorbitant amount of refund of tax; or (c) who have filed returns, but in the opinion of the Commissioner he is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Commissioner himself. The words any registered dealer in Sub-Section (4) indicates a singular dealer and not a group of Dealers. Therefore, such orders under Section 64(4) cannot be passed for a group of registered dealer in one go. The recording the opinion about the default of the assessee cannot be construed to be an administrative function or administrative order passed by the Commissioner. Therefore, such an order under Section 64(4) of the Act can be nothing but a quasi-judicial order, entailing civil consequences for the Assessee or Dealer concerned. In view of this, the orders to be passed under Section 64(4) of the Act have to meet the principles of natural justice viz., the compliance of the principles of audit alteram par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner to authorise officers below to undertake such audit is wholly untenable and unsustainable order. 11. The audit of the books and accounts of an assessee is required not only under the provisions of Section 64 (4) of the Act but such provisions, which may be applicable to the assessee concerned, may be under the other relevant statutes also like the provisions of the Companies Act, if an assessee is a limited Company, under the provisions of the Income Tax Act, vide Section 142(2A) thereof as well. The Income Tax Act even contains a provision in Section 142(2A) for direction of the special audit by the Auhtority concerned after giving an opportunity of hearing to the assessee. Therefore, directing the audit of the acounts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conducting audit by the specified Authority as directed by the Commissioner. The order dated 16.05.2014 does not meet these requirements of law at all. 6. It is clear from the above that under Section 64(4) of the Act, it does not empower the Commissioner to delegate the power and to pass orders to any lower authority and the Commissioner himself will have to pass orders. 7. In view of the same, the direction given by the learned Single Judge directing the Commissioner to delegate the power, is not sustainable. Hence, the consequential direction issued by the learned Single Judge is liable to be interfered with by this Court in line with the earlier Division Bench referred supra. 8. In view of the above discussion, it is left op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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