Special tax recovery powers under a sales tax statute permit on-the-spot computation distinct from regular assessment.

A taxing statute may create a special recovery mechanism distinct from the regular assessment process, and an officer acting under valid delegation can compute tax on the spot for that limited purpose. Under the Orissa Sales Tax Act, the Commissioner's delegation under section 17 supported the Sales Tax Officer's exercise of powers under section 16D, and departmental placement under vigilance did not negate that authority. Section 16D operated as a special code for search, seizure, release of goods, and immediate recovery where evasion was suspected, so the computation made thereunder was valid without a separate regular assessment under section 12.

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Issues: (i) Whether the Sales Tax Officer (Vigilance) was competent to realise tax and penalty under section 16D of the Orissa Sales Tax Act, 1947 despite functioning under the Inspector-General of Police (Vigilance); (ii) Whether the action taken under section 16D in computing and recovering tax on the spot amounted to a valid assessment distinct from the regular assessment under section 12.

Issue (i): Whether the Sales Tax Officer (Vigilance) was competent to realise tax and penalty under section 16D of the Orissa Sales Tax Act, 1947 despite functioning under the Inspector-General of Police (Vigilance).

Analysis: The power under section 17 permits the Commissioner to delegate powers and duties under the Act to persons appointed under section 3 to assist him. The relevant notification specifically delegated powers under section 16D to Sales Tax Officers and Inspectors of Sales Tax. The officer in question was a Sales Tax Officer from the Sales Tax Department and had been conferred powers under section 16D to search, seize and recover the amount on the spot. His departmental control under vigilance did not deprive him of the statutory delegation.

Conclusion: The Sales Tax Officer (Vigilance) was competent to realise the tax and penalty; the contrary view was erroneous.

Issue (ii): Whether the action taken under section 16D in computing and recovering tax on the spot amounted to a valid assessment distinct from the regular assessment under section 12.

Analysis: The Act draws a distinction between regular assessment under section 12 and recovery of tax in cases of detection under section 16D. Section 16D operates as a special code for seizure, release of goods and recovery of tax where evasion is suspected. In that setting, the officer is authorised to compute the tax payable for release of the goods, and such computation is treated as assessment only in the limited sense relevant to section 16D, not as the regular assessment machinery under section 12.

Conclusion: The computation and recovery made under section 16D was valid and did not require a separate regular assessment under section 12.

Final Conclusion: The statutory scheme authorised delegation to the Sales Tax Officer (Vigilance) and permitted on-the-spot computation and recovery in proceedings under section 16D, so the High Court's order was set aside and the departmental appeal succeeded.

Ratio Decidendi: Where a taxing statute expressly provides a special mechanism for search, seizure and on-the-spot recovery, the officer acting under valid delegation may compute the tax for that limited purpose, and such computation is distinct from the ordinary assessment procedure under the general assessment provision.

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