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2022 (5) TMI 1112 - HC - VAT and Sales TaxSeeking permission for reassessment - power to grant permission for reassessment - Whether section 56(1) of the Act permits the Assessing Officer to refer the case to the Commissioner or Joint Commissioner for assessment/re-assessment? - HELD THAT:- Section 31 of the Act provides rectification of the order on an application of any interested person; whereas, section 29 of the Act empowers on the reason recorded by the assessing authority or the Commissioner on its own after being satisfied that it is just and expedient to do so to grant permission of the closed assessment for reassessment, where the turnover of a dealer for any assessment year or part thereof has escaped assessment to tax or has been under-assessed or has been assessed, but taxed at a lower rate than what at which it is assessable under the Act or any deduction or exemption have wrongly been allowed in respect thereof; meaning thereby, under sections 29 & 31 of the Act appropriate order can be passed by moving an application or seeking permission by the authority concerned - section 56 of the Act does not provide any power to the Commissioner to grant permission of reassessment on the application of the assessing authority. There is no dispute that the Commissioner, on its own motion, call for and examine the records relating to any order passed by any Officer subordinate to him for the purposes of satisfying himself as to the legality or propriety of such order and thereafter, passed such order in respect thereof as he deems fit. The power of the Commissioner is not in question in the present revision as per section 56(1) of the Act. The issue involved in the present revision is only confined to the initiation of the reassessment proceedings by the assessing authority seeking permission of the Commissioner to reassess the revisionist under section 56(1) of the Act. If this procedure is permitted, then section 29 of the Act provides for reassessment will become redundant. Once there is a specific provision empowering authorities to act as per the procedure, the same must be adhered to. Any deviation from such procedure will cause havoc in the State. Section 56 of the VAT Act would reveal that the section has wide power, but seeking of permission by the assessing authority for making reassessment of the dealer is not conferred under the said provision. For reassessment, different provision has been prescribed under the VAT Act,i.e., section 29 and its sub-sections. It is not the case of the Department that section has wrongly been quoted, but specifically the Joint Commissioner (Executive), in the opening paragraph of the order under section 56(1) of the VAT Act while granting permission, has mentioned the said fact that the permission for reassessment is sought by the assessing authority and the permission has wrongly been granted by the Joint Commissioner (Executive) - The Joint Commissioner (Executive) has exceeded in his jurisdiction, which has been endorsed by the Tribunal without looking into the provisions of the Act, which is very clear. The revision is allowed with cost of Rs. 5,000/-, which shall be deposited within a month from today.
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