THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.32090 of 2010 Dated:24.01.2011 Between: M/s.Ideal Interior. …Petitioner and The Commercial Tax Officer (Int), Hyderabad Rural Division, Hyderabad, And others. …Respondents THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.32090 of 2010 ORDER: (per Hon’ble Sri Justice V.V.S.Rao) In this writ petition Rule 59(4)(ii)(d) of the Andhra Pradesh Value Added Tax Rules, 2005 (the Rules), is impeached as ultra vires Section 2(4) of the Andhra Pradesh Value Added Tax Act, 2005 (the Act). The order of assessment in Form VAT 305, dated 28.10.2010, passed by the first respondent, namely, Commercial Tax Officer (Int), Hyderabad (Rural) Division, Hyderabad, is also assailed as unauthorized. In the recent past in a group of cases, being W.P.No.855 of 2008 and batch, dated 30.12.2010, this Bench has considered the validity of the selfsame rule as well as the question whether the authorization for audit given by the Deputy Commissioner under Rule 59(1)(7) of the Rules read with Section 43 of the Act also enables the Audit Officer to undertake assessment for the relevant period. The question was answered in the negative. The conclusions in the judgment dated 30.12.2010 are as follows. Relief (a) In the result, in the analysis and for the reasons as above, we reject the relief to declare Rule 59(1)(4)(ii)(b) and (d) of the VAT Rules as ultra vires. We also declare that sub- sections (3) and (4) of Section 17 do not suffer from any constitutional infirmity and are valid. We also reject all other prayers for declaring the impugned rule and impugned assessment orders as ultra vires or invalid except to the extent indicated in (b) and (c) below; (b) In view of our holding that the authorisation to audit under Section 43 read with Rule 59(1)(7) by itself does not enable audit officer to undertake assessment, we set aside all the assessment orders and consequential orders, if any under Section 53 of the VAT Act, in all the writ petitions; (c) All the impugned assessment orders shall stand 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 Deputy Commissioner issues separate orders authorizing assessment, it shall be open to such authorizing officer or authority prescribed, as the case may be, to undertake assessment in accordance with law; (d) W.P.No.1704 of 2009 is disposed of setting aside the assessment order, dated 16.12.2008 for the period from April, 2005 to March, 2006. This is, however, subject to the power and jurisdiction of the revisional authority under Section 32(1) of the VAT Act; and (e) We direct the parties to bear their own costs. Following the same, the impugned assessment order is set aside, and the writ petition stands disposed of accordingly without any order as to costs. _______________ (V.V.S.RAO, J) _____________________________ (RAMESH RANGANATHAN, J) 24.01.2011 vs