THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.5576 of 2011 ORDER: (Per Hon’ble Sri Justice Ramesh Ranganathan) The order of assessment dated 07.02.2011, for the tax period 2008-09 till September, 2010, passed by the 2nd respondent levying tax of Rs.6,60,03,623/- is under challenge in this Writ Petition as being arbitrary and illegal. The petitioner, a public limited company with its registered office at Bangalore, is engaged in the business of executing turnkey projects, cement plants etc., The 2nd respondent issued a notification of advisory/audit visit in Form VAT 304 and a notice, for production of documents and records, in Form VAT 310. The petitioner submitted the required documents by its letter dated 17.08.2010. The 2nd respondent rejected the turnover reported and the tax paid in the monthly returns by the petitioner, and levied tax of Rs.6,60,03,623/- under the A.P. VAT Act. The said order is under challenge, among others, on the ground that it is without jurisdiction, and the first respondent was merely authorized to carry out audit and not to assess the petitioner to tax under the provisions of the VAT Act. Sri P. Balaji Verma, Learned Standing Counsel for Commercial Taxes, would fairly state that the first respondent was merely authorized to conduct an audit, and not to assess the petitioner to tax. The Division bench of this Court, in M/s. Sri Balaji Flour Mills v. The Commercial Tax Officer-II, Chittoor, Chittor District[1] held that, in the absence of an authorisation to assess a dealer to tax, an audit officer was only entitled to carry out audit, and the assessment order passed by him without necessary authorization was beyond his jurisdiction. Following the said judgment, this Writ Petition is also allowed in terms thereof. The impugned order of assessment is set aside, and the matter is remitted to the respective audit officers who shall submit audit reports as contemplated under Chapter VII of the VAT Audit Manual for appropriate Post Audit Action. If the competent controlling and/or supervising authority, like the Deputy Commissioner, issues separate orders authorizing assessment, it shall be open to such authorized officer or authority prescribed, as the case may be, to undertake assessment in accordance with law. The Writ Petition is allowed to the extent indicated hereinabove. However, in the circumstances, without costs. _____________ V.V.S.RAO, J ___________________________ RAMESH RANGANATHAN, J 17.03.2011 MRKR [1] Judgment in W.P. Nos.855 of 2008 & batch, dated 31.12.2010