Pending tax appeal remains alive despite final assessment where appellate determination is still under challenge.

An appeal against provisional assessment and penalty did not become infructuous merely because a final assessment order was later passed. The appellate order under section 13(4) was stated to be final and binding on the assessing authority, so the final assessment could not disregard that determination while the correctness of the appellate view remained under challenge before the Tribunal. Treating the pending appeal as meaningless would improperly deny review of the appellate order and confer unwarranted finality on it. The appeal therefore had to be heard on merits, and the legal effect of the final assessment would depend on the outcome of that appeal.

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Issues: Whether an appeal before the Sales Tax Tribunal against an order relating to provisional assessment and penalty under section 7B of the Rajasthan Sales Tax Act, 1954 becomes infructuous on the passing of the final assessment order under section 10.

Analysis: The appellate order under section 13(4) is final and binding on the assessing authority. Once the Deputy Commissioner (Appeals) has decided the taxability issue, the assessing authority, while completing the final assessment, cannot act contrary to that appellate determination merely because a second appeal is pending. Treating the pending appeal as infructuous would deny the Tribunal the opportunity to test the correctness of the appellate order and would, in effect, confer unwarranted finality on that order. The effect of the final assessment depends upon whether the appellate view is upheld or reversed, and the pending appeal cannot be rejected in the abstract as having become meaningless.

Conclusion: The appeal before the Tribunal did not become infructuous after the final assessment order and had to be heard on merits.

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