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2016 (12) TMI 1203 - HC - VAT and Sales TaxValidity of order of assessment - Orissa Entry Tax Act - escapement of assessment of tax for the tax period from 1.4.2008 to 31.7.2015 - petitioner claim that no tax under the heading of “Odisha Entry Tax” has been evaded by it for the period in question, but the authorities without appreciating the defence statement filed by it, has passed order on the same date i.e. on 6.11.2015 putting liability of penalty on the petitioner - Held that: - Under the Taxation Rule the assessee is required to furnish self assessment and the authority is required to assess the same and there is no provision provided under the Act to communicate in case of acceptance of the assessment. Although under the provision of Orissa Value Added Act under Section 38 read with Section 7(10) each and every return in relation to any tax period furnished by a registered dealer shall be subject to scrutiny by the assessing authority to verify the correctness of the calculation, application of correct rate of tax and interest etc. and in case of any mistake, detected in course of scrutiny, the assessing authority shall serve a notice in the prescribed form as we find even from the provision of section 7 or subsection (11) and as such, if the authorities have not issued any notice under Section 7(11), then the assessment made by the registered dealer under the provisions of Section 9 will be said to be accepted. Whether the the order impugned of demand has been passed mechanically and without consideration of the second proviso to Rule 3(4) of the Rules? - Held that: - the second proviso stipulates a provision of relaxation in making payment of tax liability where declaration in Form E16 from the buying manufacturer is furnished. The contention of the petitioner is that while passing the order, the assessing authority has not appreciated the second proviso to Rule 3(4) of the Rules, 1999, but we are not in agreement with the said contention for the reason that the petitioner nowhere, has stated as to whether it has given declaration in Form E16 so as to avail the benefit as provided under the second proviso to Rule 3(4) of the Rules, 1999, which is the condition stipulated in the said statutory provision. Prior to 1.7.2012 reassessment for the period of five years was provided under the statute, but after 1.7.2012 the period of five years has been extended to seven years. Petition disposed off - petitioner free to approach appellate forum if he so wishes.
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