Tax recovery fails when the underlying rectification assessment is finally annulled and no subsisting order remains in force.

Tax recovery cannot be sustained where the rectification assessment has been finally annulled and no subsisting assessment order remains in force for the relevant period. The validating amendment could not, by itself, support recovery once the underlying rectification order had ceased to have legal effect. On that basis, the assessee had no liability for the assessment year in question, and amounts already paid for that year became refundable. The impugned recovery therefore had no legal foundation, with consequential refund relief following.

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Issues: Whether, after the appellate tribunal had annulled the rectification assessment, any legal basis remained for recovering central sales tax for the assessment year 1963-64 and whether the assessee was entitled to refund of amounts paid.

Analysis: The rectification order made on the basis of the validating amendment did not survive after the tribunal cancelled it, and that cancellation had become final. Once the rectification order was annulled, there was no legal and effective assessment order in force for the relevant assessment year on the basis of which recovery could be made. The validating amendment could not support recovery in the absence of a subsisting assessment or rectification order. On that footing, the assessee had no liability for the period and any amount already paid for that year became refundable.

Conclusion: The recovery could not be sustained, and the assessee was entitled to refund of the tax paid for the relevant assessment year.

Final Conclusion: The writ petition succeeded in substance, with a declaration that the impugned recovery had no legal foundation and with consequential refund relief.

Ratio Decidendi: Tax recovery cannot be sustained where the underlying assessment or rectification order has been finally annulled and no subsisting legal and effective assessment order remains in force for the relevant period.

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