Fresh notice of demand not required after appellate modification of assessment where original demand notice was validly served.

Where a valid notice of demand has already been served on the basis of an assessment, an appellate order that merely reduces or confirms the assessment does not create a fresh and independent liability requiring a second notice under the Act. The phrase "in consequence of any order passed under or in pursuance of this Act" was treated as referring back to the original assessment as modified in appeal, not as mandating a new demand notice after every appellate order. On that basis, the assessee could be treated as in default without a further notice, and the penalty was sustained.

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Issues: Whether a fresh notice of demand is after the appellate authority reduces or confirms an assessment, before the assessee can be treated as in default and visited with penalty.

Analysis: The liability to pay arose from the original assessment order and the notice of demand already served under the Act. The appellate order under section 31, whether reducing or confirming the assessment, did not create a fresh and independent liability requiring a second notice under section 29. The phrase "in consequence of any order passed under or in pursuance of this Act" was read as referring back to the original assessment as modified in appeal, not as requiring a new demand notice after every appellate order. The form prescribed under the Rules and the administrative circulars also indicated that a further notice was not essential where the demand was merely altered on appeal.

Conclusion: No fresh notice of demand was necessary; the assessee could be treated as in default, and the penalty order was sustained.

Ratio Decidendi: When a valid notice of demand has been served on the basis of an assessment, an appellate order that merely reduces or confirms the assessment does not require a second notice of demand for enforcement of the tax liability.

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