2025 (2) TMI 1485 - HC - VAT / Sales Tax

Functus Officio: assessing authority cannot reopen an assessment merged into a final appellate order; reopening set aside.

Where an assessing authority's assessment order merged into a final appellate tribunal order that was not further challenged, the assessing authority ... Functus officio - merger of assessment with appellate order - jurisdiction to reopen assessment after final appellate order - finality of tribunal order - HELD THAT:- Once the order of the Tribunal dated 19.08.2000 has attained finality, the misc. order dated 01.11.2023 passed by the Assessing Authority is without jurisdiction. The Assessing Authority vide order dated 01.11.2023 has wrongly tried to reopen the matter and rectified the order dated 03.11.1997. There is no dispute that the order of the Assessing Authority dated 03.11.1997 stood merged with the order of the Tribunal dated 19.08.2000, which was later on not assailed by the Revenue in revision or any other higher court. Once the said order dated 03.11.1997 had merged with the order of the Tribunal dated 19.08.2000, it had seized to have an independent existent and the assessing authority has become functus officio to revise the same on any ground. The controversy arising in this revision stands clearly covered by the above decisions. Accordingly, I hold that once the order of the assessing authority had merged in the order of the tribunal, in view of the above decisions, the assessing authority is left with no jurisdiction to pass the order dated 01.11.2023 as he has become functus officio. Thus, the judgement & order dated 16.03.2024 passed by the Commercial Tax Tribunal, Bench - 1, Meerut in Appeal No. 02/2024 as well as the Misc. order dated 01.11.2023 passed by the Deputy Commissioner, Meerut and the order dated 22.12.2023 passed by the Additional Commissioner are hereby set aside. The question of law is decided in favour of the revisionist. Issues: Whether, when an assessing authority's assessment order has merged into and been finally disposed of by an appellate tribunal order (not assailed further), the assessing authority has jurisdiction to pass a miscellaneous/rectification order to reopen or revise the assessment relying on subsequent judicial decisions.Analysis: The assessment order of 03.11.1997 was merged into the appellate tribunal order dated 19.08.2000 which was not challenged by the Revenue; therefore that tribunal order attained finality. Precedent establishes that once an assessing authority's order merges into a final appellate order, the assessing authority becomes functus officio and loses jurisdiction to issue notices or reopen the assessment (including under Section 22 of the U.P. VAT Act). Subsequent judicial decisions favourable to the Revenue do not revive jurisdiction of an assessing authority over an assessment which has been finally determined on appeal and not further assailed.Conclusion: The assessing authority had no jurisdiction to pass the miscellaneous order dated 01.11.2023 or to reopen the assessment; the impugned orders upholding that reopening are set aside; decision is in favour of the revisionist (assessee).Ratio Decidendi: Where an assessing authority's order has merged with and been finally disposed of by a tribunal/appellate order not challenged further, the assessing authority is functus officio and cannot lawfully reopen or revise that assessment; therefore reopening proceedings based on subsequent judgments is impermissible.