THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.4504 of 2011 ORDER: (Per Hon’ble Sri Justice Ramesh Ranganathan) The order of assessment dated 24.01.2011, for the tax period 2008-2009 to 2010-2011, is under challenge in this Writ Petition as being illegal and contrary to law. The petitioner, a company incorporated under the Companies Act, 1956, carries on business in the manufacture of cement. It is a registered dealer under the provisions of A.P. VAT Act on the file of the 2nd respondent. The 1st respondent visited the premises of the appellant and conducted an audit based on an authorization given to him by the 3rd respondent. In the course of audit of the records, the 1st respondent observed that the petitioner had claimed input tax credit on transformers and cables and also on the machinery and equipment supplied by the supplier. A notice in Form 305-A dated 27.10.2010 was issued by the 1st respondent. The petitioner submitted their reply thereto on 24.11.2010. The 1st respondent passed the assessment order dated 24.01.2011 levying tax of Rs.79,47,750/-. 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