Indian Oil Adani Ventures Limited Vs State of Odisha (Orissa High Court)
Orissa High Court held that submission of Audit Visit Report beyond the prescribed time limit invalidates the entire audit assessment under Odisha Value Added Tax Act, 2004 [Odisha VAT Act]. Since notice is invalid, the Assessment Order, therefore, is insupportable.
Facts- 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.
Conclusion- Held that the notice in Form VAT-306 prescribed under Rule 49 issued for undertaking Audit Assessment under Section 42 based on the AVR is considered to be barred by limitation provided under Section 41(4). Since notice is invalid, the Assessment Order, therefore, is insupportable. The maxim “sublato fundamento credit opus”, meaning thereby in case foundation is removed, the superstructure falls would be applicable in the present fact-situation of the case warranting indulgence in the Audit Assessment order dated 21.03.2025. Once the basis of a proceeding is gone, all consequential acts, action, orders would fall to the ground automatically and this principle of consequential order which is applicable to judicial and quasi-judicial proceedings is equally applicable to the administrative orders.
