2009 (3) TMI 929

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....refore, until the time which is normally to be given as per the rules to pay the tax demanded expires, after service of notice of demand, the petitioner is not liable to be treated as a defaulter. Nevertheless exhibit P4 notice under the Revenue Recovery Act has been issued and the same has also been challenged in this writ petition. Since the petitioner has preferred an appeal against exhibit P3 and exhibit P3 is even otherwise appealable under the provisions of the CST Act, I am not inclined to verify the correctness of exhibit P3 in these proceedings. Learned counsel for the petitioner is right when she submits that recovery proceedings ought not to have been initiated till a notice of demand is served and time was granted to the asse....

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..... Pursuant to the order in appeal, the assessing officer revised the assessment vide exhibit P1 dated January 31, 2007. In the said order interest is seen calculated from March 7, 2003 to March 31, 2007 and the total interest demanded is Rs. 47,94,137. However, the assessing officer later noticed that the assessment revised pursuant to the order in appeal vide exhibit P1 is not in accordance with the direction contained in the appellate order and therefore he issued exhibit P3 proceedings on March 14, 2008 rectifying the assessment and demanding interest in accordance with the direction contained in the appellate order from May 1, 1999 to March, 2008. The total interest demanded under the rectified order, namely, exhibit P3, is Rs. 1,22,98,....

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....for the notice of demand issued. In fact, respondent does not dispute that they were in receipt of notice of demand pursuant to original assessment and pursuant to revised order issued under orders of the appellate authority. The only question is whether fresh notice of demand should be issued once the revised order issued pursuant to appellate order is again rectified. In this case we notice from exhibit P3 proceedings that the assessing officer besides rectifying the revised order, rectified the notice of demand as well by the following statement contained in exhibit P3 "the demand notice already issued is rectified to the above extent". There can be no doubt that the effect of this operative portion of the order is that the interest port....