The Madurai bench of the Madras High Court has held that the commissioner has no power to delegate the power on passing orders to any lower authority under section 64(4) of the TNVAT Act,2006.
M/s. V.V.V. & Sons Edible Oils Ltd filed the petition against the order passed by the Single Judge allowing the writ petition, but granting liberty to the Commissioner (CT) Chennai, to delegate the power to an Officer, not below the rank of Deputy Commissioner (CT) and to conduct the enquiry.
The petitioner challenged the impugned proceedings of the first respondent, dated 16.09.2013, whereby, the Joint Commissioner (CT), Tirunelveli Division, has passed an order to the effect that the petitioner must prepare themselves for a proposed VAT audit and to cooperate with the audit officers by producing the monthly returns, books of accounts, stock statements, etc., for the period from 2008-2009 to 2013-2014.
As per section 64 (4) of the TNVAT Act, the first respondent namely, the Joint Commissioner (CT), Tirunelveli Division, did not have the approval of the authority given by the Commissioner to issue the impugned proceedings but the Commissioner was directed to delegate the power in terms of Section 64(4) of the TNVAT Act.
It was evident that Section 64(4) of the Act, does not empower the Commissioner to delegate the power and to pass orders to any lower authority and the Commissioner himself will have to pass orders and the direction given by the Single Judge directing the Commissioner to delegate the power is not sustainable, viewed Justice J Nisha Banu and Justice N Anand Venkatesh.
While allowing the writ appeal, the bench directed the Commissioner to exercise his powers under Section 64(4) of the Act, after giving an opportunity to the appellant. Mr S.Raja Jeya Chandra Paul appeared on behalf of the appellant and Mr R. Baskaran appeared on behalf of the respondent.
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