M/S. Deepak Steel And Power LTD., Keonjhar vs. The Commissioner Of Commercial Taxes And GST, Odisha

Facts

The petitioners, M/s. Deepak Steel and Power Ltd. & Another, challenged an assessment order dated 12th June 2017 passed by the Deputy Commissioner of Sales Tax, Barbil Circle, Barbil. This order raised a demand under the Central Sales Tax Act for the period 1st April 2013 to 31st March 2015. The petitioners argued that they could not produce required documents because all their documents had been seized by the Vigilance Department during a raid. This same ground had led this Court to set aside a previous assessment order for the period 1st April 2010 to 31st March 2011 under the Orissa Value Added Tax Act (OVAT Act) and the Odisha Entry Tax Act (OET Act) and remand the matter for fresh assessment. The Opposite Parties are the Commissioner of Commercial Taxes & GST & Others.

Held

The Court held that the assessment order dated 12th June 2017, passed against the petitioners for the period 1st April 2013 to 31st March 2015, should be set aside. The reasoning was based on the identical ground that led this Court to previously set aside assessment orders for the petitioners for the period 1st April 2010 to 31st March 2011 under the OVAT Act and OET Act. That ground was the inability of the petitioners to produce necessary documents because they were seized by the Vigilance Department. The Court found merit in the petitioners' submission that consistency in judicial approach required the same outcome. The ratio decidendi is that if an assessment order is set aside and remanded due to the inability of the assessee to produce documents because they were seized by a government agency, subsequent assessment orders for similar periods and on similar grounds should also be set aside and remanded, allowing the assessee an opportunity to produce the documents. The Court set aside the impugned assessment order and remanded the matter to the Assessing Authority for fresh assessment proceedings. The petitioners were directed to appear before the Assessing Authority on 10th April 2023 and cooperate to ensure a fresh assessment order is passed within four months thereafter, after granting sufficient opportunity to produce relevant documents. The petitioners were also permitted to apply for certified copies of the seized documents.

Key Issues

1. Whether the assessment order dated 12th June 2017, passed under the Central Sales Tax Act for the period 1st April 2013 to 31st March 2015, should be set aside on the ground that the petitioners could not produce required documents due to their seizure by the Vigilance Department. Petitioner's arguments: The petitioners contended that the inability to produce documents was solely due to their seizure by the Vigilance Department. They relied on this Court's previous order dated 11th May 2018 in W.P.(C) No.2963 of 2018, which set aside a similar assessment order for a different period under the OVAT Act and OET Act on the very same ground and remanded the matter for fresh assessment. They argued that consistency in judicial approach demanded the same relief in the present case. Revenue's arguments: The judgment records no specific arguments from the revenue or opposite parties.