2007 (5) TMI 569 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to assessment order u/s Orissa Value Added Tax Act, 2004 based on jurisdictional grounds.

Summary:
The petitioner, a registered dealer under the Orissa Value Added Tax Act, challenged the assessment order dated January 17, 2007, passed by the Sales Tax Officer, Assessment Unit, Jagatsinghpur. The challenge was based on the grounds that the assessment should have been done by the assessing authority of the range, not the assessment unit. The relevant provisions of the OVAT Act and Rules were cited to support this argument.

The petitioner contended that as per rule 34(12)(b) of the Orissa Value Added Tax Rules, dealers granted registration and assigned with TIN numbers can only be assessed by the "assessing authority of the range." The impugned assessment order was passed by the Sales Tax Officer, not the assessing authority of the range, as required by the rule. Therefore, the order was held to be without jurisdiction and not in conformity with the rule.

The High Court set aside the assessment order and directed the petitioner to appear before the Assistant Commissioner of Sales Tax, Cuttack II Range for further proceedings. The Sales Tax Officer, Assessment Unit, Jagatsinghpur, was instructed to transfer the records to the Assistant Commissioner. The writ application was disposed of, and a copy of the order was provided to the counsel for the Revenue for compliance.