THE HON'BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION Nos.10988 and 11093 of 2011 Dated:19.07.2011 Between: M/s.V.Rama Mohana Rao, D.No.27-23-45, Governorpet, Vijayawada, Krishna District … Petitioner And The Commercial Tax Officer, Governorpet Circle, Vijayawada, Krishna District And others ... Respondents THE HON'BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION Nos.10988 and 11093 of 2011 COMMON ORDER: (Per Hon’ble Sri Justice V.V.S.Rao) These two writ petitions are filed by Value Added Tax dealers within territorial jurisdiction of the Assessing Officers in Krishna District. They imp the assessment orders (impugned orders) which were passed by a non territ Officer of the rank of Commercial Tax Officer sequel to an audit conducted him in purported exercise of authorization issued by the jurisdictional De Commissioner of Commercial Taxes. The petitioners contend that the impugned orders passed, pursuan audit, are unsustainable as being without jurisdiction as the De Commissioner only authorized audit of the value added tax accounts of petitioner, and there was no specific authorization to undertake assessm They placed strong reliance on the decision of this Bench in Balaji Flour Mil the Commercial Tax Officer-II, Chittoor, Chittoor District[1]. As the issu only limited to this aspect, we refrain from summing up the factual backgroun these cases which indeed is not necessary. The Special Counsel for Commercial Taxes would submit that as assessment orders have been passed as per the authorization audit – cu assessment programme issued by the Deputy Commissioner, the or impeached are sustainable. The authorization, in Form ADM 1B as per the A Manual, is a composite authorization. The Deputy Commissioner authorized Officer to audit the value added tax dealer and to assess, if required. It is bro to our notice that, after this Bench delivered the judgment in Balaji Flour M the Commissioner of Commercial Taxes issued a Circular bearing No.CC Ref.AIII(1)/15/2011, dated 31.01.2010, amending Form ADM 1B, “so that a si authorization can be issued for both audit and assessment to the offi concerned”. This has, indeed, been put in issue before us as being in devia from the ratio in Balaji Flour Mills. Our attention has been invited to paragraphs 46, 50 and 59 in B Flour Mills. In sum and substance this Bench laid down that authorization audit of value added tax dealer and authorization to undertake assessm pursuant to such audit are two distinct requirements, and the former alone w not suffice for undertaking the assessment. The Special Counsel Commercial Taxes does not seriously dispute the legal position having rega the judgment of the Division Bench referred to supra. I n Balaji Flour Mills, placed in such a situation, we set aside assessment orders and remitted the matters to the respective Audit Officers a direction to submit audit reports as contemplated under Chapter VII of Value Added Tax Audit Manual for appropriate post audit action. If jurisdictional Deputy Commissioner issues separate orders authori assessment, then only those Officers can undertake assessment in accorda with law (See paragraphs 59(b) and (c) of Balaji Flour Mills). Following the same, these writ petitions shall stand disposed of in following manner. The assessment orders shall stand set aside. The matters shall now to the Audit Officers (who passed orders), who shall submit audit reports to Deputy Commissioner for appropriate action in accordance with the judgme this Court in Balaji Flour Mills. This exercise shall be completed within a pe of eight weeks from the date of receipt of a copy of this order. We make it c that if any of the dealers, in these matters, have already availed the remed appeal under Section 31(1) of the Andhra Pradesh Value Added Tax Act, 2 the appellate orders shall also stand set aside on this ground. There shall be order as to costs. _____________ (V.V.S. RAO ____________________________ (RAMESH RANGANATHAN 19.07.2011 KH [1] (2011) VST 40 150 (A.P.)