The assessment under Section 42 of the Odisha Value Added Tax Act is invalid if based on an Audit Visit Report submitted after the statutory deadline, thus protecting the integrity of tax procedures.

JUDGMENT :

MURAHARI SRI RAMAN, J.

By way of filing writ application under the provisions of Articles 226 and 227 of the Constitution of India, the petitioner craves to question the legality, propriety and jurisdiction of the Joint Commissioner of Sales Tax, CT and GST Circle, Paradeep in framing assessment for the tax periods from 01.04.2010 to 31.03.2013 under Section 42 of the Odisha Value Added Tax Act, 2004, vide Order dated 21.03.2025 purported to have been passed in pursuance of Order dated 19.10.2023 of the Joint Commissioner of Sales Tax (Appeal), Territorial Range, Cuttack-II, Cuttack in Appeal No.AA/03/OVAT/CUII/2022-23.

Facts emanate from the writ petition:

2. A Tax Audit in terms of Section 41 of the Odisha Value Added Tax Act, 2004 (for short, "OVAT Act") read with Rule 41 of the Odisha Value Added Tax Rules, 2005 (for brevity, "OVAT Rules") for the tax periods 01.04.2010 to 31.03.2013 was undertaken with respect to M/s. IOT Infrastructure and Energy Services Limited [The name of originally incorporated "IOT INFRASTRUCTURE AND ENERGY SERVICES LIMITED" has been changed from "INDIAN OIL TANKING LIMITED" to "INDIANOIL ADANI VENTURES LIMITED" vide Certificate of Incorporation pursuant to change of name dated 09.03.2023 issued in terms of Rule 29 of the Companies (Incorporation) Rules, 2014, by the Government of India, Ministry of Corporate Affairs.], in pursuance of which Audit Visit Report in Form VAT-303 (AVR", for short) as prescribed under Rule 45 was prepared on 31.03.2016 by the Deputy Commissioner of Sales Tax, Jagatsinghpur Circle, Paradeep. No assessment proceeding was initiated under Section 42 of the OVAT Act pursuant thereto.

2.1. Nonetheless, a notice dated 21.07.2016 in Form VAT-307 prescribed under Rule 50 was issued for assessment of tax on the ground of escaped turnover under Section 43 . On the petitioner being "assessed under Section 39 for the tax periods from 01.04.2010 to 31.03.2013 on 01.07.2016", such proceeding under Section 43 was stated to have been initiated. Accordingly, assessment under Section 43 of the OVAT Act for the tax periods from 01.04.2010 to 31.03.2013 was framed vide Order dated 10.02.2017 by the Sales Tax Officer, Jagatsinghpur Circle, Paradeep, with the following prelude:

This is an order of assessment passed under Section 43 of the OVAT Act, 2004 in case of M/s. IOT Infrastructure and Energy Services Limited, plot No.486, Bijayachandrapur, Paradeep, District: Jagatsinghpur, bearing TIN 21021303619 for the tax periods from 01.04.2010 to 31.03.2013.

The dealer-company is found to have filed the returns electronically for the tax periods from 01.04.2010 to 31.03.2013 and as such the same are deemed as self-assessed under Section 39 of the OVAT Act, 2004.

The Audit Visit Report in case of the above named dealer- company for the tax periods from 01.04.2010 to 31.03.2013 was received from the Deputy Commissioner of Sales Taxes, Jagatsinghpur Circle, Paradeep on dated 12.07.2016. Consequent upon examination of the returns filed by the dealer-company vis-a-vis the Audit Visit Report the following facts were revealed for the above tax periods. ***"

2.2. Said assessment order was challenged before this Court in a writ petition, being W.P.(C) No.4513 of 2017, which came to be disposed of on 08.12.2022 by relegating the petitioner to avail remedy of appeal.

2.3. Appeal against the Order dated 10.02.2017 passed under Section 43 was filed, which came to be disposed of by the Joint Commissioner of Sales Tax (Appeal), Cuttack-II Range, Cuttack ("Appellate Authority", for brevity), vide Order dated 19.10.2023 with the following observation:

"However, from the above