Continuation of certain recovery proceedings

Continuation of certain recovery proceedings.—

1. (1) Where a notice of demand in respect of any tax, penalty or interest is served upon a dealer and any appeal or other proceeding is filed or initiated in respect thereof, then,—
   • (a) where such appeal or proceeding results in the enhancement of the amount of tax, penalty or interest, the Commissioner shall serve upon the dealer another notice of demand in respect of the amount by which such tax, penalty or interest is enhanced, and any recovery proceedings in relation to the amount covered by the notice or notices of demand served upon him before the disposal of such appeal or proceeding may be continued from the stage at which such proceedings stood immediately before such disposal;
   • (b) where such appeal or proceeding results in the reduction of such amount, it shall not be necessary for the Commissioner to serve upon the dealer a fresh notice of demand and the amount of tax, penalty or interest reduced shall be deemed to be the amount due from the dealer.
2. (2) No proceedings in relation to such amount as is referred to in sub-section
3. (1) shall be invalid by reason only that no fresh notice of demand was served after the disposal of the appeal or proceeding, as the case may be.