Prior approval for regular sales tax assessment need not include a pre-decisional hearing where turnover threshold is satisfied.

Prior approval of the Assistant Commissioner under rule 90-A(4) for proceeding to regular assessment under section 12 of the Orissa Sales Tax Act, 1947 did not require a pre-decisional hearing to the dealer. The rule was read as requiring only satisfaction of the turnover condition and supervisory approval before withdrawal from lump sum payment, with the dealer's explanation to be heard in the assessment proceeding itself. Where the statutory threshold for regular assessment was undisputedly met, the approval could not be invalidated for want of prior notice or hearing. The reference to section 12(8) was not pursued further because no prejudice was shown.

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Issues: Whether prior approval of the Assistant Commissioner under rule 90-A(4) for assessment under section 12 of the Orissa Sales Tax Act, 1947 required an opportunity of hearing to the dealer before sanctioning withdrawal from lump sum payment and regular assessment.

Analysis: The dealer had been permitted to pay tax in lump sum, but the sales tax authorities initiated regular assessment after finding that the gross turnover exceeded the statutory threshold. The rule only required the Sales Tax Officer to obtain prior approval of the Assistant Commissioner before proceeding under section 12 where the turnover condition was satisfied. The rule did not prescribe any pre-decisional hearing before according such approval, and the dealer was to have the opportunity to explain turnover in the regular assessment proceeding itself. Since the statutory condition for initiation of assessment was undisputedly satisfied, the approval could not be invalidated merely for want of prior notice or hearing. The suggested resort to section 12(8) was not examined further because no prejudice or legal advantage was shown.

Conclusion: Prior hearing before granting approval under rule 90-A(4) was not required, and the challenge to the assessment on that ground failed.

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