Penalty jurisdiction limited to assessing authority; Deputy Commissioner lacked power and the order was quashed.

The Andhra Pradesh High Court held that the penalty power under Section 7-A(2) of the Andhra Pradesh General Sales Tax Act, 1957, was exercisable only by the assessing authority duly notified by the Government. A Deputy Commissioner, not being an assessing authority, lacked jurisdiction to pass the penalty order. The Court rejected reliance on Section 14(4-C), reasoning that extending the power to a higher authority would deprive the assessee of the statutory right of appeal against an order of the assessing authority. The impugned order was quashed.

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Issues: Whether the Deputy Commissioner had jurisdiction to pass the penalty order under Section 7-A(2) of the Andhra Pradesh General Sales Tax Act, 1957.

Analysis: The power under Section 7-A(2) was held to be exercisable only by the assessing authority. The assessing authorities were those duly notified by the Government, and the Deputy Commissioner was not one of them. The argument based on Section 14(4-C) was rejected, as extending the power to higher authorities would deprive the assessee of the statutory right of appeal against an order of the assessing authority.

Conclusion: The Deputy Commissioner lacked jurisdiction to pass the impugned order, and the order was quashed.

Ratio Decidendi: A penalty power conferred on the assessing authority alone cannot be exercised by a higher authority unless the statute expressly authorises such delegation, particularly where doing so would defeat the assessee's statutory right of appeal.

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