Continuation and validation of certain recovery proceedings

Continuation and validation of certain recovery proceedings.—

1. (1) Where any notice of demand in respect of any tax, penalty, interest or any other sum payable under this Act, is served upon any dealer or person by any Sales Tax authority and any appeal or other proceeding is filed or initiated in respect of such sum, then,—
   • (a) where such sum is enhanced in such appeal or proceeding, the Commissioner shall serve upon the dealer or person another notice of demand in respect of the amount by which such sum is enhanced, and any proceeding in relation to the amount of such sum as originally demanded shall be continued and validly so, as if it were a proceeding in relation to the amount originally demanded;
   • (b) where such sum is reduced in such appeal or proceeding,—
     • (i) it shall not be necessary for the Commissioner to serve upon the dealer or person a fresh notice of demand;
     • (ii) the Commissioner shall give intimation of the fact of such reduction to the dealer or person;
     • (iii) any proceeding initiated for the recovery of such sum shall be continued in relation to the amount so reduced, from the stage at which it stood immediately before such reduction.
2. (2) No proceeding for the recovery of any sum shall be invalid merely by reason of the fact that the original notice of demand was served upon a dealer or person and that notice was not effectively issued or served or was found to be defective, provided that the dealer or person had knowledge of such demand and had failed to pay the same.