Hindustan Tyre House Vs Dy. Commissioner of Sales Tax (Orissa High Court)
The case of Hindustan Tyre House versus the Deputy Commissioner of Sales Tax before the Orissa High Court concerns the validity of an assessment/reassessment order dated 29.09.2014 passed by the Deputy Commissioner of Sales Tax (DCST) under the Odisha Value Added Tax (OVAT) Act. The petitioner sought to quash the assessment/reassessment order, the notice of demand, and the notice issued by the DCST.
The petitioner’s counsel argued that the assessment/reassessment order was based solely on a fraud case report received from the DCST Vigilance, Sambalpur, suggesting sales suppression by the petitioner. It was contended that before issuing the notice of demand and the assessment/reassessment order, the DCST should have formed an opinion as required under Section 43 of the OVAT Act. Failure to do so rendered the assessment/reassessment order invalid.
On the other hand, the Additional Standing Counsel representing the DCST contended that the assessment/reassessment order was justified under Section 98(1) of the OVAT Act, which validates proceedings made in conformity with the Act, despite any mistakes, defects, or omissions.
The Court examined the provisions of Section 98(1) of the OVAT Act, which states that proceedings shall not be deemed invalid merely due to any mistakes, defects, or omissions if they are in substance and effect in conformity with the Act. However, the Court emphasized the requirement of compliance with Section 43 of the OVAT Act, which mandates the forming of an opinion by the Assessing Authority before passing an order.
