Delegated tax recovery requires lawful authority and supervisory control; action by an unauthorised officer was quashed and refund ordered.

Realisation of tax and penalty under section 16-D of the Orissa Sales Tax Act was held invalid because the Sales Tax Officer, Vigilance, was not shown to be acting under the required control and supervision of the Commissioner of Commercial Taxes. A delegated statutory power can be exercised only by an officer lawfully empowered and subject to the prescribed administrative supervision; the delegation notice produced did not cure the jurisdictional defect. The impugned realisation was therefore quashed, the consequential order of the Additional Commissioner was set aside, and the amounts collected were directed to be refunded.

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Issues: Whether the Sales Tax Officer, Vigilance, was competent to realise tax and penalty under section 16-D of the Orissa Sales Tax Act, 1947, and whether the consequential order of the Additional Commissioner was valid.

Analysis: The authority exercising power under section 16-D had to act within the powers delegated by the Commissioner and remain under the Commissioner's control and supervision. On the facts, the Sales Tax Officer, Vigilance, functioning under the Inspector-General of Police, Vigilance, was not shown to be under the control and supervision of the Commissioner of Commercial Taxes for the purpose of making such realisation. The notice of delegation produced did not cure the lack of jurisdiction in the exercise of power by the concerned officer.

Conclusion: The realisation of tax and penalty was without jurisdiction and was quashed, along with the consequential order of the Additional Commissioner.

Final Conclusion: The writ petition succeeded, and the amounts collected from the petitioner were directed to be refunded.

Ratio Decidendi: An assessment or realisation made under delegated statutory power is valid only when exercised by an officer lawfully empowered and subject to the requisite administrative control and supervision; absent such jurisdiction, the action is void.

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