M/S.Goa Carbon LTD. vs. Dy.Commissioner Of Sales Tax

2024

Heard Mr. S.P. Dalai, learned counsel appearing for the Petitioner and Mr. Sunil Mishra, learned Standing Counsel for the CT & GST Department-Opposite Parties.

In the present case, it appears that assessment proceedings in lieu of audit under Section 42A of the Odisha Value Added Tax Act, 2004 and under Rule 12(3) of the Central Sales Tax (O) Rules, 1957 for the tax period 01.04.2013 to 31.03.2015 were carried out. As a consequence of such assessment in lieu of audit, orders under Section 42A of the Odisha Value Added Tax Act, 2004 and under Rule 12(3) of the Central Sales Tax (O) Rules, 1957 were passed on 24.10.2016 under Annexures-9 & 10 respectively. Thereafter, it appears that a notice dated 05.12.2016 under Annexure-1 has come to be issued basing on the Circular No.18034/CT dated 30.11.2016 under Annexure-2, intimating the withdrawal of assessment orders passed under Section 42A of the Odisha Value Added Tax Act, 2004 and under Rule 12(3) of the Central Sales Tax (O) Rules, 1957. It is contended on behalf of the petitioner that once pursuant to statutory notices, assessment orders are passed; there is no scope for withdrawal of assessment orders, so also there is no scope for further initiation of proceeding under Section-41 of the Odisha Value Added Tax Act, 2004 and Central Sales Tax (O) Rules, 1957. It is submitted that the order of withdrawal under Annexure-1 is otherwise bad in law as the same has been issued without any prior notice, thus in violation of principles of natural justice.

Since the Petitioner has fully participated in the proceedings initiated under Section 42A of the Odisha Value Added Tax Act, 2004 and under Rule 12(3) of the Central Sales Tax (O) Rules, 1957 resulting in passing of assessment orders under Annexure-9 & 10 respectively, the withdrawal of said orders unilaterally without notice under Annexure-1 has caused violation of principles of natural justice. Further there exists no provision in law, which authorizes opposite party no.1 to pass the withdrawal order in completed assessment proceedings. Accordingly, Annexure-1 stands quashed.

Accordingly, the writ petition is allowed.