Orissa HC directs Tribunal to Check Validity of Audit Assessment given the Delay in AVR under Entry Tax Act [Read Order]

In a recent case, the High Court( HC ) of Orissa directed the Tribunal to check the validity of the audit assessment given the delay in the Audit Visit Report(AVR) under the entry tax act

Jay Kishan Dasmall Jute Products (P) Ltd., the petitioner filed the revision petition arising from an order dated 23rd February 2016 passed by the Odisha Sales Tax Tribunal, Cuttack (Tribunal) dismissing the Assessee’s application.

The question before the court was whether the imposition of freight charges at the rate of one per cent of the purchased value on overall turnoverbased on the market value without examining the individual vouchers and considering the contention of the Petitioner that the purchased materials at the market rate are inclusive of freight charges sustainable in the eye of law.

Mr Dayananda Mohapatra, counsel for the Petitioner stated that the Assessee would like to urge the validity of the audit assessment under Section 9-C of the Orissa Entry Tax Act, 1999 (OET Act) on account of the delay in submission of the audit visit report (AVR). It was pointed out that theissue was covered in favour of the Assessee and against the Department by the order of the Court in the case of State of Odisha v. M/s. Chandrakanta Jayantilal.

A Coram comprising of Chief Justice M S Raman set aside the impugned order of the Tribunal in S.A. No.129 (ET) of 2014-15 and S.A. No.129(ET) of 2014-15 are restored to the file of the Tribunal for a fresh decision.

Further issued to examine whether the audit assessment is invalid on account of the delay in submission of the AVR in terms of Section 9-C (5) of the OET Act and the issue concerning freight charges after examining the vouchers produced by the Petitioner which form part of the record.

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