1968 (8) TMI 179

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..... les Tax Act for the assessment years 1959-60, 1960-61 and 1961-62 and for the first quarter of the year 1963-64. The assessment orders were followed by notices of demand. Against the assessments the petitioner preferred four separate appeals. During the pendency of the appeals a single recovery proceeding in respect of the tax liability for all the four years was initiated by the Sales Tax Officer .....

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..... essment year 1963-64. Recovery proceedings were then taken upon these notices of demand. While these recovery proceedings were still pending the petitioner applied in revision against the appellate orders praying for a further reduction of the tax liability. The revision applications were disposed of by the Additional Revising Authority (Sales Tax) by his order dated 25th October, 1967. By that or .....

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..... issued on the basis of the appellate orders and before the revision applications were decided by the Additional Revising Authority. The Supreme Court has held in Income-tax Officer v. Seghu Buchiah Setty[1964] 52 I.T.R. 538., that when an assessment order is modified or set aside in appeal recovery proceeding taken in consequence of the original assessment order is no longer sustainable and a fres .....

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..... er of the assessment year 1963-64, no revision application having been filed against the appellate order for that year, the notice of demand continues to subsist and is a valid basis for the recovery proceeding now being taken against the petitioner in respect of that period. Mr. V.K. Mehrotra, learned counsel for the respondents, relies upon The State of Madras v. Madurai Mills[1967] 19 S.T.C. .....

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..... appeal and thereafter from appeal to revision. In the result, the petition is allowed. The recovery proceedings in respect of the assessment years 1959-60, 1960-61 and 1961-62 taken on the basis of the notices of demand issued consequent to the appellate orders for those years are quashed. The remaining relief prayed for is refused. In the circumstances, there is no order as to costs. Petition a .....

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