https://www.taxtmi.com/caselaws?id=150009 Penalty for non-payment of tax demand could not be sustained where the underlying assessment had been set aside and reassessment was still pending. The Orissa HC treated penalty as ancillary to a valid subsisting assessment and held that, once the demand itself had ceased to exist, the foundation for penalty disappeared. The explanatory provision did not alter that position, because stay of recovery, default and revised demand notices operate only on an effective assessment. The penalty orders were quashed. en-us Thu, 12 Feb 1970 00:00:00 +0530 Tue, 07 May 2013 17:55:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=150009 Penalty for non-payment of tax demand could not be sustained where the underlying assessment had been set aside and reassessment was still pending. The Orissa HC treated penalty as ancillary to a valid subsisting assessment and held that, once the demand itself had ceased to exist, the foundation for penalty disappeared. The explanatory provision did not alter that position, because stay of recovery, default and revised demand notices operate only on an effective assessment. The penalty orders were quashed. Case-Laws VAT and Sales Tax Thu, 12 Feb 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=150009