Suo Motu Revisional Proceeding has to be concluded not beyond five years from Original Order of Assessment: Orissa HC [Read Order]

The Orissa High Court (HC) has held that the suo motu revisional proceeding must be concluded not beyond five years from the original order of assessment.

The original assessment of Orissa State Co-operative Milk, the Appellant-Dealer under Section 9C of the OET Act was completed on 28th March 2011 by the Deputy Commissioner of Sales Tax (DCST), Bhub aneswar raising a demand of Rs.37,30,881/- (Entry Tax Rs.5,05,365/- and Penalty Rs.32,25,516/-).

Subsequently, the AG (Audit) scrutinized the assessment record and raised certain objections based on which reassessment proceedings were initiated by the DCST under Section 10 of the OET Act and completed on 12th March 2012. A proposal was sent by the Assessing Officer to the Commissioner for initiation of suo motu revisional proceedings under Section 18(1) of the OET Act for the entire period from 1st April 2005 to 31st March 2008 including the excluded period of 1st April 2005 to 31st March 2006.

A Show-Cause Notice (SCN) was issued by the Additional Commissioner for initiation of suo motu revision of the order on 11th March 2016. Among the objections taken by the Dealer to the exercise of the suo motu, revisional power was that it was barred by limitation as it was more than 5 years from the order dated 28th March 2011 passed by the DCST.

Justice M S Raman observed that It was a settled legal position that the suo motu revisional proceeding has to be concluded not beyond five years from the original order of assessment.  Further viewed that the Assessee-Dealer had filed an appeal against the reassessment order which was pending before the First Appellate Authority and during the pendency of that appeal, the suo motu revisional power was sought to be exercised by the Additional Commissioner which is impermissible in law. While allowing the appeal, the Court set aside the impugned order dated 10th May 2016 of the Additional Commissioner

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