Statutory audit authorisation must come from the designated officer; administrative circulars cannot override that power.

The power to authorise a VAT audit under the Tamil Nadu VAT Act lies with the Commissioner of Commercial Taxes, so authorisation by a Joint Commissioner is without jurisdiction and invalid. A circular dated 16.05.2014 was treated only as an administrative guideline and did not create a binding prohibition on a further audit of the same assessee. The VAT audit proceedings and consequential revision notices were therefore set aside, and any fresh audit must follow the statutory procedure.

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Issues: (i) Whether the Joint Commissioner had jurisdiction to authorise VAT audit under Section 64(4) of the Tamil Nadu Value Added Tax Act, 2006. (ii) Whether the circular instructions dated 16.05.2014 barred a second VAT audit for the same assessee.

Issue (i): Whether the Joint Commissioner had jurisdiction to authorise VAT audit under Section 64(4) of the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The statutory scheme vested the power to authorise VAT audit in the Commissioner of Commercial Taxes. The authority exercised by the Joint Commissioner was not supported by the provision and was inconsistent with the mandatory requirement that the audit be authorised by the competent officer specified in the statute.

Conclusion: The authorisation issued by the Joint Commissioner was without jurisdiction and invalid.

Issue (ii): Whether the circular instructions dated 16.05.2014 barred a second VAT audit for the same assessee.

Analysis: The circular was treated as an administrative guideline and not as a source of binding legal prohibition. It could not override the statutory power to order audit where the Commissioner considered audit necessary.

Conclusion: The circular did not create an enforceable bar against a further VAT audit.

Final Conclusion: The VAT audit proceedings and consequential revision notices were set aside, and the respondents were directed to conduct any fresh audit only in accordance with the statutory procedure.

Ratio Decidendi: Where a fiscal statute specifies the authority empowered to authorise an audit, that power must be exercised only by the designated authority, and an administrative circular cannot curtail the statutory power unless it has legal force.

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