The High Court
Case Details
Signature Not Verified Digitally Signed Signed by: MADHUSMITA SAHOO Reason: Authentication Location: High Court of Orissa, Cuttack Date: 28-Jul-2025 16:25:57 IN THE HIGH COURT OF ORISSA AT CUTTACK RVWPET NO.224 OF 2022 (An application under Articles 226 & 227 of the Constitution of India) State of Odisha ***** …… Petitioner -Versus- M/s. Kansai Nerolac Paints Ltd., Cuttack .…… Opp. Party Advocates appeared:
Legal Reasoning
For Petitioner : Mr. Sunil Mishra, Senior Standing Counsel (CT & GST) For Opp. Party : Mr. Brahmananda Tripathy, Advocate CORAM : MR. JUSTICE K.R. MOHAPATRA MR. JUSTICE R.K. PATTANAIK
Decision
------------------------------------------------ Heard and disposed of on 25.07.2025 ---------------------------------------------- JUDGMENT By the Bench; 1. This matter is taken up through hybrid mode. 2. Perused the kind minutes of Hon’ble the Acting Chief Justice at Flag-B assigning the matter to be heard by a Division Bench where Shri Justice R.K. Pattanaik is a member. Hence, this RVWPET is listed before this Bench for adjudication. RVWPET No. 224 OF 2022 Page 1 of 5 Signature Not Verified Digitally Signed Signed by: MADHUSMITA SAHOO Reason: Authentication Location: High Court of Orissa, Cuttack Date: 28-Jul-2025 16:25:57 // 2 // 3. This RVWPET has been filed to review the order dated 20th July, 2022 passed by this Court in STREV No.82 of 2013. 4. Mr. Mishra, learned Senior Standing Counsel (CT & GST) submits that STREV No.82 of 2013 was filed by the Opposite Party in the review petition assailing the order dated 8th May, 2013 passed by the Odisha Sales Tax Tribunal, Cuttack in S.A. No.147/(ET) of 2009-10 for the period 1st April, 2005 to 30th June, 2006. The STREV was disposed of by this Court vide order dated 20th July, 2022 with the following observation: “2. The consideration by this Court: following question is framed for has power Whether the learned STO, Cuttack-I East Circle, Cuttack and jurisdiction to make audit assessment of the Petitioner who is a TIN Dealer?” The above question stands answered in favour 3. of the Assessee and against the Department in view of the order dated 3rd December, 2021 of this Court in W.P.(C) No.31350 of 2011 (M/s. Konark Gas and Tools, Cuttack v. State of Odisha) which in turn refers to the decision of this Court in Madras Cement Ltd. v. State of Odisha [2007] 10 VST 187 (Ori). 4. Consequently, the question is answered in the negative i.e. in favour of the Assessee and against the Department and the impugned order of the Tribunal to that extent is set aside. Liberty is granted to the Department to initiate appropriate proceedings afresh in accordance with law. 5. above terms.” The revision petition is disposed of in the 5. Mr. Mishra, learned Senior Standing Counsel (CT & GST) submits that although the CTO, Cuttack-I, East Circle, RVWPET No. 224 OF 2022 Page 2 of 5 Signature Not Verified Digitally Signed Signed by: MADHUSMITA SAHOO Reason: Authentication Location: High Court of Orissa, Cuttack Date: 28-Jul-2025 16:25:57 // 3 // Cuttack was conferred with jurisdiction to Cuttack-I Range to make audit assessment vide Gazette Notification dated 15th May, 2006, but, the said Gazette Notification could not be placed at the time of adjudication of STREV. As a result, the STREV was disposed of taking into consideration the order dated 3rd December, 2021 passed by this Court in W.P.(C) No.31350 of 2011 (M/s. Konark Gas & Tools, Cuttack –v- State of Odisha), which referred to the decision of this Court in Madras Cement Ltd. –v- State of Odisha, reported in (2007) 10 VST 187 (Ori), answering the substantial question of law in the negative against the Department and liberty was granted to the Department to initiate appropriate proceedings afresh in accordance with law. 6. Mr. Mishra, learned Senior Standing Counsel (CT & GST) has placed on record the Gazette Notification dated 15th May, 2006 conferring jurisdiction of STO, Cuttack-I, East Circle, Cuttack to make the audit assessment. He, thus, submits that had the said Gazette Notification been placed during adjudication of the STREV, the outcome might have been different. Hence, he prays for recalling the order, sought to be reviewed and also prays for a direction to consider STREV No.82 of 2013 afresh on its own merit. 7. Mr. Tripathy, learned counsel for the Opposite Party vehemently objects to the above. It is his submission that neither before learned Tribunal nor before this Court, during adjudication of STREV No.82 of 2013, the said Gazette RVWPET No. 224 OF 2022 Page 3 of 5 Signature Not Verified Digitally Signed Signed by: MADHUSMITA SAHOO Reason: Authentication Location: High Court of Orissa, Cuttack Date: 28-Jul-2025 16:25:57 // 4 // Notification was brought to the notice for adjudication. Thus, the impugned order does not fall within the ambit of power of this Court for review. 8. Upon hearing learned counsel for the parties, this Court finds that the Gazette Notification dated 15th May, 2006 conferred jurisdiction of Range-I Cuttack on the CTO, Cuttack-I, East Circle to make the audit assessment. For ready reference, relevant portion of the said Gazette Notification issued on 15th May, 2006, is reproduced hereunder: “S.R.O. No.286/2006-In exercise of the powers conferred by sub-section (4) of Section 3 of the Orissa Value Added Tax Act, 2004 (Orissa Act 4 of 2005) read with sub-rule (2) of the Rule 3 of the Orissa Value Added Tax Rules, 2005, I, Dr. Taradatt, I.A.S., Commissioner of Sales Tax, Orissa, Cuttack do hereby specify the jurisdiction of the Sales Tax Officers named in Column (2) of the schedule below under the area noted against their name in Column (4) of the schedule thereof. The persons concerned shall assume jurisdiction over the area specified in column (4) with effect from the date of their in the new assignment:- Sl. No. Name of the Officer with place of posting Government in F.D. Notification No. & date of declaration as sales Tax Officer Area of jurisdiction xxx xxx xxx xxx 7. Smt. Kumuda Patra C.T.O., Cuttack I East Circle No.27116/F., Dt.19-6-2003 Cuttack I Range , 8.1. From the above Gazette Notification dated 15th May, 2006, it is apparent that the CTO, Cuttack-I East Circle was RVWPET No. 224 OF 2022 Page 4 of 5 Signature Not Verified Digitally Signed Signed by: MADHUSMITA SAHOO Reason: Authentication Location: High Court of Orissa, Cuttack Date: 28-Jul-2025 16:25:57 // 5 // conferred with jurisdiction of ‘Cuttack I Range’ for making audit assessment. This notification was apparently not placed during adjudication of STREV No.82 of 2013. Since the notification is relevant for answering the substantial question of law framed with regard to jurisdiction of STO, Cuttack-I, East Circle to make the audit assessment, which was answered in the negative against the Department, this Court feels that the same requires fresh adjudication taking into consideration the Gazette Notification dated 15th May, 2006 issued by the Commissioner of Sales Tax, Odisha, Cuttack. 9. Accordingly, the order dated 20th July, 2022 is recalled and STREV No.82 of 2013 be heard afresh, on the substantial question of law framed, taking into consideration the Gazette Notification dated 15th May, 2006 (supra). 10. With the aforesaid observation and direction, this RVWPET is disposed of. Urgent certified copy of this order be granted on proper application. (K.R. Mohapatra) Judge (R.K. Pattanaik) Judge Orissa High Court, Cuttack, Dated 25th July, 2025/Madhusmita RVWPET No. 224 OF 2022 Page 5 of 5