Revisional authority can set aside Assessment order but cannot proceed to pass fresh Assessment Order, which can only be passed by the Assessing Officer
Solidus Hi Tech Products Pvt. Ltd. filed the VAT Return for the years 2006-07, 2007-08 and 2008-09 in which the tax paid by the Petitioner at the rate of 4% on the sales of parts of UPS. The aforesaid return had been deemed to have been accepted.
In terms of Section 39(1) of the KVAT Act the matter was opened for reassessment proceeding by the Deputy Commissioner and vide an order dated April 5, 2010, confirmed that the Return was in order.
Further the matter was taken up by the Revisional Authority and in terms of Section 63A of the KVAT Act,Notice was issued to the Petitioner on December 16, 2013 and the Revisional Authority vide an Order dated November 12, 2014 set aside the order of Deputy Commissioner and further proceeded to pass Reassessment Order under Section 63A of the KVAT Act.
The Hon’ble High Court of Karnataka held that the Revisional Authority can cancel and set aside the Assessment order and direct the Assessing officer to pass fresh Assessment Order but could not proceed to pass an Assessment Order. Thus, theRevisional Authority has clearly exceeded its jurisdiction in proceeding to reassess the case and to that extent, the Order passed by the Revisional Authority is wholly unjustified in law and liable to be quashed.
(Bimal Jain, FCA, FCS, LLB, B.Com (Hons), Email: firstname.lastname@example.org)