Audit power under VAT law must follow statutory rank requirements; a Joint Commissioner's direction lacked authority.

Section 64(4) of the Tamil Nadu Value Added Tax Act, 2006 permits the Commissioner to order audit of a registered dealer's business through an officer not below the rank of Deputy Commercial Tax Officer. An audit direction issued by a Joint Commissioner was inconsistent with that statutory language and lacked lawful authority. In the absence of material showing valid delegation or authorisation under the provision, the audit order could not be sustained and was liable to be set aside.

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Issues: Whether the Joint Commissioner had the power under section 64(4) of the Tamil Nadu Value Added Tax Act, 2006 to order audit of the petitioner's business.

Analysis: The provision empowered the Commissioner to order audit of the business of a registered dealer by an officer not below the rank of Deputy Commercial Tax Officer. The impugned order showed that the audit was authorised by the Joint Commissioner, which was not supported by the statutory language. In the absence of material showing lawful authority to issue such an order, the impugned audit direction could not be sustained.

Conclusion: The audit order was without authority under section 64(4) and was liable to be set aside.

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