VAT audit authorisation must come from the Commissioner; Joint Commissioner approval rendered audit and follow-on assessments invalid.

Under the Tamil Nadu VAT Act, audit authorisation had to be issued by the Commissioner under Section 64(4), and the statutory power could not be exercised by the Joint Commissioner in the absence of delegation. As the audit was initiated on the basis of authorisation issued by the Joint Commissioner, with no material showing Commissioner approval, the audit proceedings were without jurisdiction. The consequential revision notices and assessment orders were also invalid and were set aside.

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Issues: Whether the VAT audit and the consequential revision notices and assessment orders were jurisdiction because the authorization under Section 64(4) was issued by the Joint Commissioner instead of the Commissioner.

Analysis: Section 64(4) of the Tamil Nadu Value Added Tax Act, 2006 vests the power to authorize audit in the Commissioner. The record disclosed that the audit in question was carried out on the basis of authorization issued by the Joint Commissioner, and there was no material to show any authorization by the Commissioner. The statutory scheme did not provide for delegation of this power to the Joint Commissioner. In view of the admitted position and the earlier decisions relied on, the initiation of audit proceedings was without jurisdiction, and the consequential notices and assessment orders could not stand.

Conclusion: The challenge was upheld. The VAT audit, the revision notices, and the assessment orders were held to be without jurisdiction and were set aside.

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