Tax recovery by attachment cannot proceed while payment time is validly extended under the sales tax scheme.

The Orissa Sales Tax Act distinguishes ordinary recovery from the special recovery process by attachment. Where the authority extends the time for payment under the second proviso to section 13(5), section 13-A(7) bars resort to attachment until the extended period expires, so the dealer cannot be treated as a defaulter during that time. The commentary also notes that if an assessment is reduced, a revised notice of demand is required before default consequences can arise. On this construction, an attachment issued while the payment time remained extended could not be sustained and had to be vacated.

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Issues: Whether an attachment issued for recovery of tax can continue to operate where the authority has extended the time for payment of the disputed demand.

Analysis: The statutory scheme under section 13 and section 13-A of the Orissa Sales Tax Act, 1947 distinguishes between ordinary recovery after default and the special mode of recovery by attachment. The second proviso to section 13(5) empowers extension of the date of payment, and section 13-A(7) excludes resort to the special recovery machinery where the payment date has been extended. The recovery provisions and Rule 32 of the Orissa Sales Tax Rules, 1947 indicate that a dealer cannot be treated as a defaulter until the extended time expires. The Court also held that where assessment is reduced, a revised notice of demand is contemplated before default consequences can follow.

Conclusion: The attachment could not be sustained while the time for payment stood extended, and the notice of attachment was vacated.

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