- (1.) RESPONDENT is a wholesale dealer in biscuits of different brands under the provisions of the Orissa Sales Tax Act, 1947 and Central Sales Tax Act, 1956. On 14th October, 1999, goods were being unloaded from vehicle No. WB-24-A-0112 when the Investigating Officer of Vigilance Wing, Balasore Division, found certain irregularity and, accordingly, the Sales Tax Officer (Vigilance), raised a sum of Rs. 32,592.00 as tax and Rs. 54,320.00 as penalty under Section 16-D of the Orissa Sales Tax Act, 1947 (for short, the Act).
(2.) THE main contention of the respondent is that the Sales Tax Officer (Vigilance) is not competent to make assessment under Section 16-D of the Act inasmuch as he is an officer under the control of Inspector General of Police (Vigilance) and has no power to make assessment. Under notification dated 14th May, 1997, the Commissioner delegated his powers and duties under Section 16-D of the Act to the Sale's Tax Officers and Inspectors of Sales Tax Department. The said notification was issued under Section 3(3) of the Act. The notifications issued indicate officers by designation who have been conferred with the powers of the Commission. By a cryptic order, the High Court opined that since the Sales Tax Officer (Vigilance) had been functioning under the Inspector General of Police (Vigilance), he was not competent to realize the amount and, therefore, the realization of the aforestated amounts as tax and penalty was without jurisdiction and, accordingly, the order of the Additional Commissioner dated 1st January, 2000 stood quashed. Against the said judgment, the Department has come to this Court by way of Civil Appeal.
(3.) TWO questions arise for consideration in this Civil Appeal. Firstly, whether the High Court was right in holding that the Sales Tax Officer (Vigilance) was not entitled to realize the aforestated amounts as he has been functioning under the Inspector General of Police (Vigilance). The second question is whether the Sales Tax Officer (Vigilance) was entitled to assess and recover/realize the sum of Rs. 32,592/- as tax from the assessee. On the first question, we quote hereinbelow Section 17 of the Act. "17. Delegation of Commissioner's Functions.- Subject to such conditions and restrictions as the State Government may, by general or special order, impose, the Commissioner may, by order in writing, delegate any of his powers and duties under this Act or the rules made thereunder, to any person appointed under Section 3 to assist him." On reading Section 17 of the Act, it is clear that the Commissioner is empowered, by an order in writing, to delegate any of his powers and duties under the Act to any person appointed under Section 3 to assist him.;