TaxTMI 
TaxTMI 
2022 (9) TMI 1274
X X X X Extracts X X X X
X X X X Extracts X X X X
....le Judge allowing the writ petition, but however, granting liberty to the Commissioner (CT) Chennai, to delegate the power to an Officer not below the rank of Deputy Commissioner (CT) and to conduct the enquiry. The liberty that was granted by the learned Single Judge alone has been put to challenge in this writ appeal. 2. The petitioner challenged the impugned proceedings of the first respondent, dated 16.09.2013, whereby, the Joint Commissioner (CT), Tirunelveli Division, has passed an order to the effect that the petitioner must prepare themselves for a proposed VAT audit and to co- operate with the audit officers by producing the monthly returns, books of accounts, stock statements, etc., for the period from 2008-2009 to 2013-2014. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....registered under this Act, every dealer liable to get himself registered under this Act, and every other dealer who is required so to do by the prescribed authority by notice served in the prescribed manner, shall keep and maintain an up-todate, true and correct account showing full and complete particulars of his business and such other records as may be prescribed in any of the languages specified in the Eighth Schedule to the Constitution or in English, showing such particulars as may be prescribed and different particulars as may be prescribed for different classes of dealers. (2) (a) Every registered dealer shall keep at the place of business specified in the certificate of registration, books of account for the current year. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....a or on a random selection basis by the Commissioner; or (e) where detailed scrutiny of the case is necessary in the opinion of the Commissioner." 9.The provisions of sub-Section (4) of Section 64 empowers the Head of the Department viz., the Commissioner to order for an audit of the business of any registered dealer by an officer not below the rank of the Deputy Commercial Taxes Officer, who is much lower authority in the hierarchy. The criteria of selection of dealers of such audit as enumerated in clauses (a) to (e) of Sub-Section (4) could be broadly construed to be "Defaulter Dealers" viz., those Dealers i) who have not filed returns; ii) who have claimed exorbitant refund of tax; iii) whose....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... as stipulated in Section 64(4) clauses (a) to (e) is made out against him and if he places such a case before the learned Commissioner, it is incumbent upon of the Commissioner to apply mind and pass appropriate speaking and reasoned order in this regard. Therefore, passing of an omnibus or general order to audit of business of dealers like done in the present case, does not fit in the scheme of Section 64(4) of the Act at all. Laying down of certain criteria, as has been done in the order dated 16.05.2014, is nothing but specifying certain limits of the criterias specified in Section 64(4) of the Act.. Even in the provision itself, the Commissioner under Section 64(4) of the Act is not expected to issue a general guideline or a Circular f....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....Karnataka Industrial Area Development Board vs Assistant Commissionr of Income Tax in W.P.No.1863 of 2017 connected with W.P.No.25223 of 2016 dated 02.01.2018 is appropriate. 12. The report or material collected through such proceedings is liable to be used as a material or evidence against the Assessee during the course of assessment proceedings under the provisions of the Act. Paragraph 2 of the said order itself envisages such audit proposals to be sent to the teritorrial authorities. It is not supposed to be exercise in vaccum, but it is for collecting necessary material against the assessee and as an Antievasion measure. Therefore, while such a provision could have been incorporated in the scheme of Act as have been done in S....