Exclusive statutory audit power cannot be delegated, rendering VAT assessment orders based on unauthorised audit invalid.

Where Section 64(4) of the Tamil Nadu Value Added Tax Act, 2006 vested audit power exclusively in the Commissioner, authorisation of VAT audit by a Joint Commissioner amounted to an impermissible delegation outside the statutory scheme. As the audit was initiated without jurisdiction, the assessment orders founded on that audit could not be sustained. The Madras HC set aside the impugned audit reports and assessment orders, while leaving liberty to conduct a fresh audit and pass fresh orders in accordance with law.

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Issues: Whether a VAT audit and consequential assessment orders could be sustained when the audit was authorised by a Joint Commissioner instead of the Commissioner under Section 64(4) of the Tamil Nadu Value Added Tax Act, 2006.

Analysis: Section 64(4) empowered only the Commissioner to order audit of a registered dealer's business by an officer not below the rank of Deputy Commercial Tax Officer. The proceedings relied upon by the revenue showed that the Joint Commissioners of the Enforcement Wing were asked to authorise officers for audit, which amounted to a delegation of the Commissioner's power. Such delegation was not supported by the statutory scheme. Since the audit itself was initiated without authority, the assessment orders founded on that audit could not stand.

Conclusion: The audit authorisation was without jurisdiction and the consequential assessment orders were unsustainable.

Final Conclusion: The writ petitions succeeded, the impugned assessment orders and VAT audit reports were set aside, and liberty was left open to conduct a fresh audit and pass fresh orders in accordance with law.

Ratio Decidendi: Where a statute vests a power exclusively in a specified authority, that power cannot be delegated or exercised by another authority unless the statute expressly permits it; any proceeding founded on such unauthorised exercise is without jurisdiction.

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