M/S.Indian Oil Corporation Ltd. Vs State of Orissa — Orissa HC (2025) — LawSathi Research

M/S.Indian Oil Corporation Ltd. Vs State of Orissa — Orissa HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Rectification order dated 12th August, 2015 set aside and quashed; application for rectification restored; petitioner to communicate certified copy of the order to the AO and obtain a date of hearing for production of the original documents; AO to expeditiously deal with the application on scrutiny thereof.

Issue for consideration

Whether the rejection of petitioner's rectification application on the ground that the original documents/forms did not exist at the time of assessment was sustainable, and whether petitioner should be given an opportunity to produce the original documents for getting a correct assessment. +1 more

Court's answer

The Assessing Officer's ground for rejecting the rectification application — non-existence of the original documents/forms at the time assessment was made — is a finding not based on any evidence whatsoever; materials on record demonstrate petitioner to be in possession of the original documents.

Ratio / Principle

Only upon scrutiny of the original documents can any of them be said to be defective, which automatically requires petitioner being given opportunity to apply for and get the defect removed.

Key takeaways

Rectification order dated 12th August, 2015 is set aside and quashed; the application for rectification is restored; petitioner will communicate certified copy of the order to the AO and obtain date of hearing for production of the original documents, which the AO will scrutinise and on that basis expeditiously deal with the application.ratio¶28

Detailed headnote1 paragraphs

Central Sales Tax (Orissa) Rules, 1957 — Rule 12(3)(f) — Assessment — Forms C and F — Duplicate/defective forms — Rectification. Assessment order dated 15th July, 2015 under rule 12(3)(f) of the Central Sales Tax (Orissa) Rules, 1957 (period 1st April, 2010 to 31st March, 2014) made several additions on the ground that duplicate forms C and F had been furnished. Petitioner's subsequent rectification application was rejected on 12th August, 2015 on the ground that the original documents/forms did not exist at the time of assessment. Held: that finding was not based on any evidence; materials on record showed petitioner possessed the originals (produced at audit, whose report informed the assessment); and defectiveness of any form could only be determined upon scrutiny of the originals, automatically requiring an opportunity for petitioner to apply for and get the defect removed. Accordingly, the rectification order was set aside and quashed, the rectification application restored, and petitioner directed to present a certified copy to the AO and obtain a hearing date for production of the original documents, which the AO was to scrutinise and expeditiously act upon. Writ petition disposed of. Coram: Arindam Sinha, Acting Chief Justice and M.S. Sahoo, Judge; order dated 04.03.2025.

IN THE HIGH COURT OF ORISSA AT CUTTACK

W.P.(C) No.15767 of 2015

M/s. Indian Oil Corporation Limited, Bhubaneswar

…. Petitioner

Represented by Adv.– Mr. Satyajit Mohanty, Advocate

-Versus-

State of Orissa and others

…. Opposite Parties Represented by Adv.–

Mr. Sunil Mishra, Standing Counsel for Revenue

CORAM:

THE HON’BLE MR. JUSTICE ARINDAM SINHA, ACTING CHIEF JUSTICE AND

THE HON’BLE MR. JUSTICE M.S. SAHOO

ORDER

Order No.

06.

04.03.2025

1. Mr. Mohanty, learned advocate appears on behalf of

petitioner and submits, under challenge is assessment order dated 15^th July, 2015 made under rule 12(3)(f) of Central Sales Tax (Orissa) Rules, 1957 covering period from 1^st April, 2010 to 31^st March, 2014. He submits, several additions were made on ground that duplicate forms C and F had been furnished. His client had

subsequently applied for rectification of impugned assessment

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order. The application was rejected on order dated 12^th August, 2015.

2. On query made Mr. Mohanty submits, the original forms were available with his client but they were never called for by the Assessing Officer (AO). They were produced at the time of audit, report of which was relied upon to make impugned assessment order. He seeks interference for his client being given opportunity to produce the original documents for getting correct assessment.

3. Mr. Mishra, learned advocate, Standing Counsel appears on behalf of revenue and submits, at the time of assessment the original documents were not produced. In the circumstances, there could not be a case for rectification of the assessment order. Furthermore, some of the forms were also defective. He opposes the writ petition.

4. It appears the application for rectification was promptly made on petitioner coming to know of impugned assessment order. The additions are mainly in respect of duplicate/defective forms submitted by petitioner at the time of assessment. The AO while dealing with the rectification application gave as a ground to reject it, non-existence of the original documents/forms at the time

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assessment was made. This is a finding that is not based on any

evidence whatsoever. Materials on record do demonstrate petitioner to be in possession of the original documents. Furthermore, it is only upon scrutiny of original documents can any of them be said to be defective. It will automatically require petitioner being given opportunity to apply for and get the defect removed.

5. Rectification order dated 12^th August, 2015 is set aside and quashed. The application for rectification is restored. Petitioner will communicate certified copy of this order to the AO and obtain date of hearing for production of the original documents. On scrutiny thereof, the AO will expeditiously deal with the application.

6. The writ petition is disposed of.

( Arindam Sinha )

Acting Chief Justice

( M.S. Sahoo )

Judge

M. Panda/Secy.

A. Nanda/ Jr. Steno.

Signature Not Verified

Digitally Signed Signed by: MRUTYUNJAYA PANDA Designation: Secretary Reason: Authentication Location: High Court of Orissa, Cuttack Date: 04-Mar-2025 16:45:26

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