M Vakula Devi Vs Commercial Tax Officer and Others (Andhra Pradesh High Court)
Separate Authorisations Required for Non-Territorial Tax Officers, Rules Andhra Pradesh High Court
Hyderabad: In a significant judgment concerning the procedural requirements for tax administration, the Andhra Pradesh High Court has held that a Commercial Tax Officer acting outside their territorial jurisdiction must possess separate and specific authorisations to conduct both an audit and a subsequent assessment of a dealer. The court set aside an assessment order and consequential penalty imposed on an unregistered dealer, finding that the non-territorial officer had proceeded without the necessary twin authorisations.
The case, involving petitioner M Vakula Devi against the Commercial Tax Officer and others, arose from an audit and assessment conducted by the first respondent officer for the periods 2014-2015 and 2015-2016. The petitioner, an unregistered dealer, was subjected to these proceedings by an officer who was not her designated territorial assessing authority. Following the assessment, an order dated January 25, 2019, was passed, leading to a penalty order on March 31, 2020.
The petitioner approached the High Court contending that the assessment and penalty orders were invalid. A primary ground for challenge was the lack of proper service of these orders. The petitioner stated that she only became aware of the orders and obtained certified copies on February 21, 2025, after actively seeking them out.
