Limitation for appeal runs from a revised demand notice, not the original notice, when the assessment is altered.

Where a revised demand notice is issued after adjustments to the assessment, the limitation period for filing an appeal runs from the date of the revised notice and not from the original demand notice. The Patna HC applied this principle to hold that the appeal time had to be counted from the date on which the revised demand notice was served, because the revised notice superseded the earlier demand for limitation purposes.

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Issues: Whether, in the facts and circumstances of the case, the period of limitation for the appeal was to be counted from the date of the original demand notice or from the date of the revised demand notice.

Analysis: The reference arose under section 33(1) of the Bihar Sales Tax Act, 1959 for the assessment year 1966-67. The only question was the starting point of limitation for an appeal after a revised demand notice had been served. The Tribunal had treated the original demand notice as the relevant date, but the revised notice was issued after certain deductions were allowed. The governing principle applied was that where a revised demand notice is issued, limitation runs from the date of the revised notice and not from the original demand.

Conclusion: The period of limitation for the appeal had to be reckoned from 26th September, 1969, the date on which the revised demand notice was served. The question was answered in favour of the assessee and against the revenue.

Ratio Decidendi: When a revised demand notice is served, the limitation period for challenging the assessment runs from the date of the revised demand notice.

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