Valid delegation of assessment power sustains notice for accounts and proposed assessment after failure to file return.

A notice for production of accounts and proposed assessment was challenged as being without jurisdiction because assessment power had allegedly not been validly delegated to the Assistant Commissioner. The Orissa HC noted that the notice was issued after the dealer failed to furnish the return required under rule 7, and that the statutory scheme permitted the State Government and the Commissioner to assign jurisdiction and confer assessment powers on specified sales tax authorities. As a notification delegating assessment powers to the concerned Assistant Commissioner was on record, the notice was held valid and the jurisdictional challenge failed.

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Issues: Whether the notice issued for production of accounts and proposed assessment was without jurisdiction on the ground that the assessment power had not been validly delegated to the concerned Assistant Commissioner.

Analysis: The notice under rule 12(5) of the Central Sales Tax (Orissa) Rules, 1957 was issued in the context of the dealer's failure to furnish the return required under rule 7. The Court noted the statutory scheme under section 3(3) of the Orissa Sales Tax Act, 1947 and rule 3(4) of the Orissa Sales Tax Rules, under which the State Government and the Commissioner could assign and notify jurisdiction and confer assessment powers on the specified sales tax authorities. The record also showed a notification delegating assessment powers to the Assistant Commissioner concerned. In this background, the challenge to the notice as lacking jurisdiction was rejected, and the writ petition was found to be an attempt to delay assessment proceedings.

Conclusion: The notice and the delegation of assessment power were held to be valid, and the challenge failed.

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