Best judgment assessment invalid for lack of specific Commissioner authorisation, leaving the assessment and revisional order unsustainable.

Best judgment assessment of an unregistered dealer under section 38(7) of the Karnataka Value Added Tax Act, 2003 was held invalid because the assessing officer was not shown to have been specifically authorised by the Commissioner for that purpose. The record disclosed only audit assignment and internal notes, which did not satisfy the statutory requirement of specific authorisation. As statutory powers must be exercised strictly within the Act, the assessment order could not be sustained for want of jurisdiction, and the revisional order restoring it also failed once the foundational authorisation was absent.

---

---

Issues: Whether the best judgment assessment made under section 38(7) of the Karnataka Value Added Tax Act, 2003 was valid when the assessing officer was not shown to have been specifically authorised by the Commissioner.

Analysis: The power to assess an unregistered dealer to the best of judgment under section 38(7) could be exercised only by an authority authorised by the Commissioner for that specific purpose. The record produced did not establish such specific authorisation; at best, it showed assignment for audit and internal notes, which did not amount to the statutory authorisation contemplated by section 38(7). Since statutory authorities must act strictly within the limits of the Act, the assessment order could not be sustained in the absence of the required authorisation. The revisional order restoring that assessment also could not stand once the foundational jurisdiction was lacking.

Conclusion: The best judgment assessment was without authority of law, and the assessee succeeded in challenging both the assessment and the revisional order.

---