Court Invalidates Assessment Order for Lack of Jurisdiction

The Court found that the assessment order under the Orissa Value Added Tax Act, 2004 was without jurisdiction as it was issued by a Sales Tax Officer who was not the assessing authority of the range as required by the rules. Consequently, the Court set aside the assessment order and directed the petitioner to appear before the Assistant Commissioner of Sales Tax, Puri Range, Bhubaneswar, for further proceedings in accordance with the law. The Sales Tax Officer was instructed to transfer the records to the Assistant Commissioner. The writ application was disposed of, and a copy of the order was provided to the Revenue's counsel for compliance.

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Issues:
Challenge to assessment order under Orissa Value Added Tax Act, 2004 based on lack of valid self-assessment and jurisdiction of assessing authority.

Analysis:
The petitioner, a registered dealer under the Orissa Value Added Tax Act, challenged the assessment order dated January 31, 2007, passed by the Sales Tax Officer, Bhubaneswar-II Circle, on the grounds of lack of valid self-assessment and jurisdiction of the assessing authority. The petitioner contended that without a valid self-assessment as required by the OVAT Act and Rules, the invocation of reassessment under section 43 was illegal and unsustainable. Additionally, it was argued that the assessing authority, in this case, the Sales Tax Officer, did not have the jurisdiction to assess or reassess the petitioner as per the provisions of rule 34(12)(b) of the OVAT Rules.

The Court examined rule 34(12)(b) of the Orissa Value Added Tax Rules, which specifies that dealers granted registration under the OVAT Act and assigned with TIN numbers can only be assessed by the "assessing authority of the range." It was noted that the impugned assessment order was passed by the Sales Tax Officer, who was not the assessing authority of the range as required by the rule. Consequently, the Court held that the assessment order was without jurisdiction and not in conformity with the rule. Therefore, the order of assessment under annexure 2 was set aside.

The Court directed the petitioner to appear before the Assistant Commissioner of Sales Tax, Puri Range, Bhubaneswar, and instructed the Assistant Commissioner to serve a statutory notice and proceed with the matter in accordance with the law. Furthermore, the Sales Tax Officer, Bhubaneswar-II Circle, was directed to transmit the records of the assessee to the Assistant Commissioner. The writ application was disposed of, and a free copy of the order was provided to the counsel for the Revenue for compliance.

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