TaxTMI 
TaxTMI 
2010 (7) TMI 901
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....rge the power and duties in relation to rule 41 of the Orissa Value Added Tax Rules, 2005 ("the OVAT Rules", for short), under notification dated December 1, 2005, as per annexure 5 to the writ petition. The petitioner also assails the submission of the audit visit report in form E27 for the purpose of making audit assessment under the provisions of the Orissa Value Added Tax Act, 2004 ("the OVAT Act", for short), when the same was required to be submitted in form VAT 303. The main contention of the learned counsel for the petitioner was that the Commissioner for Sales Tax, Orissa, having issued notification dated December 1, 2005 (annexure 5), delegating to the Assistant Commissioners of Sales Tax (excluding Intelligence Ranges) to exerci....
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.... duly constituted under rule 43 of the OVAT Rules. In the said counter-affidavit, it has been further stated that the inspection of the business transactions effected by the petitioner's-firm was taken up simultaneously under both the OVAT Act and Orissa Entry Tax Act and the Rules framed thereunder and accordingly a common report had been prepared in form E27, which is substantially the same as form VAT-303. In order to avoid duplication and for convenience in recording the observation made during the course of audit, the audit visit report has been submitted in form E27, which is in substantial compliance of the statutory provisions as well as the principles of natural justice and no prejudice can be said to have been caused to the petiti....
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....ommissioner shall, under the provision of section 41, select by the 31st of January or by any date before the close of every year, commencing from the appointed day, not less than twenty per cent of registered dealers for audit during the following year, by random selection with or without the use of computers: Provided that for the year commencing with the appointed day, the selection of dealers for audit under this sub-rule shall be made by the 30th of September of that year. (2) The Commissioner, where considers it necessary to safeguard the interest of revenue or where any enquiry is required to be conducted on any specific issue or issues relating to any dealer, or class or classes of dealers, on being referred by an Officer appointe....
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.... fit. A combined reading of the aforesaid statutory provisions makes its abundantly clear that the Commissioner of Sales Tax has delegated his powers and duties with regard to selection of dealers for tax audit on random basis and issue of direction for conducting tax audit in respect of such dealers, in accordance with the approved audit programme. The said notification excludes the intelligence ranges from exercising such powers to select the dealers for tax audit. But once the concerned Assistant Commissioner of Sales Tax has selected the dealer for tax audit, the intelligence range is not prohibited from conducting such tax audit. Such provisions have been incorporated in the statute to check evasion of tax, causing loss of State reven....