The Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964

This Act may be called the Taxation Laws (Continuation and Validation ofRecovery Proceedings) Act, 1964.

In this Act, unless the context otherwise requires,-- (a) "assessee", in relation to-- (i) the Excess Profits Tax Act, 1940 (15 of 1940), or the Business Profits Tax Act, 1947 (21of 1947), means a person by whom the tax or any other sum is payable under that Act; (ii) the Estate Duty Act, 1953 (34 of 1953), means a person accountable or an accountableperson as defined in that Act; (iii) any other scheduled Act, means an assessee as defined in that Act; (b) "Government dues", in relation to any scheduled Act, means any tax, duty, penalty, fine,interest, annuity deposit or any other sum payable to the Government by an assessee under that Act; (c) "scheduled Act" means an Act specified in the Schedule; (d) "Taxing Authority", in relation to any scheduled Act, means an officer (by whatever namecalled) empowered to serve upon an assessee a notice of demand in respect of any Government duesunder that Act; (e) "Tax Recovery Officer", in relation to any scheduled Act, means a Tax Recovery Officer asdefined in that Act and where there is no such definition, means an officer (by whatever name called)to whom a certificate for the recovery of arrears of Government dues may be issued under that Act.

(1) Where any notice of demand inrespect of any Government dues is served upon an assessee by a Taxing Authority under any scheduledAct, and any appeal or other proceeding is filed or taken in respect of such Government dues, then,-- (a) where such Government dues are enhanced in such appeal or proceeding, the TaxingAuthority shall serve upon the assessee another notice of demand only in respect of the amount bywhich such Government dues are enhanced and any proceedings in relation to such Government duesas are covered by the notice or notices of demand served upon him before the disposal of such appealor proceeding may, without the service of any fresh notice of demand, be continued from the stage atwhich such proceedings stood immediately before such disposal; (b) where such Government dues are reduced in such appeal or proceeding,-- (i) it shall not be necessary for the Taxing Authority to serve upon the assessee a fresh noticeof demand; (ii) the Taxing Authority shall give intimation of the fact of such reduction to the assessee,and where a certificate has been issued to the Tax Recovery Officer for the recovery of suchamount, also to that officer; (iii) any proceedings initiated on the basis of the notice or notices of demand served upon theassessee before the disposal of such appeal or proceeding may be continued in relation to theamount so reduced from the stage at which such proceedings stood immediately before suchdisposal; (c) no proceedings in relation to such Government dues (including the imposition of penalty orcharging of interest) shall be invalid by reason only that no fresh notice of demand was served uponthe assessee after the disposal of such appeal or proceeding or that such Government dues have beenenhanced or reduced in such appeal or proceeding: Provided that if as a result of any final order such Government dues (other than annuity deposit)have been reduced and the penalty imposed on the assessee for default in payment thereof exceeds theamount so reduced, the excess shall not be recovered, and if it has already been recovered, it shall berefunded to the assessee on an application made by him to the Taxing Authority wihin such time andin such manner as may be prescribed by rules made under this Act: Provided further that if the amount of penalty imposed on the assessee for failure to make anyannuity deposit exceeds one-half of the amount of the annuity deposit required to be made as a resultof such order, the excess shall not be recovered and if it has already been recovered, shall be refundedto the assessee on an application made by him to the Taxing Authority within such time and in suchmanner as may be prescribed by rules made under this Act: Provided further that where any Government dues are reduced in such appeal or proceeding andthe assessee is entitled to any refund thereof, such refund shall be made in accordance with theprovisions of that Act. (2) For the removal of doubts, it is hereby declared that no fresh notice of demand shall be necessaryin any case where the amount of Government dues is not varied as a result of any order passed in anyappeal or other proceeding under any scheduled Act. (3) The provisions of this section shall have effect notwithstanding any judgment, decree or order ofany court, tribunal or other authority.

The Central Government may, by notification in the OfficialGazette, add the name of any Central Act providing for the imposition or levy of any tax or duty in theSchedule and on the issue of any such notification, the Act so added shall be deemed to be an Actspecified in the Schedule within the meaning of clause (c) of section 2.

The provisions of this Act shall apply and shall be deemedalways to have applied, in relation to every notice of demand served upon an assessee by any TaxingAuthority under any scheduled Act whether such notice was or is served before or after the commencement of this Act.