2025-VIL-1179-ORI
  1. Home
  2. 2025-VIL-1179-ORI

VAT High Court Cases

Odisha Value Added Tax Act, 2004 - Audit Assessment; Limitation Period – Challenge to validity of Joint Commissioner of Sales Tax initiating Audit Assessment proceedings under Section 42 of the OVAT Act, 2004 based on an Audit Visit Report submitted under Section 41 beyond the stipulated time period - The Assessing Authority had earlier proceeded under Section 43 for assessing escaped turnover based on the same Audit Visit Report, which was set aside by the Appellate Authority - Whether the Assessing Authority could have initiated Audit Assessment proceedings under Section 42 based on the AVR which was time-barred under Section 41(4), by invoking the provisions of Section 49(2) of the Act - HELD - The provisions of Section 49(2) cannot be invoked to correct the jurisdictional error within the same statute, i.e., from Section 43 to Section 42. Section 49(2) empowers the Assessing Authority to reassess tax under the OVAT Act or Central Sales Tax Act when a Court or Tribunal determines that the transaction was assessed under the wrong law. However, it does not apply when the Assessing Authority chooses to proceed under a wrong provision within the same statute, i.e., Section 43 instead of Section 42 – Further, the "Appellate Authority" defined under the Act cannot be equated with a "Court" for the purposes of Section 49(2). The express language of Section 49(2) refers to an order passed by "any Court or Tribunal" in appeal or revision, which does not include the order of the Appellate Authority under Section 77 - Since the AVR was time-barred under Section 41(4), the Assessing Authority could not have initiated Audit Assessment proceedings under Section 42 relying on the same. The notice dated 01.05.2024 in Form VAT-306 and the consequent Audit Assessment order are accordingly quashed - The writ petition is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTR-9 & GSTR-9C of FY24-25
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?