Appeal against assessment

(1) Any assessee may, in the prescribed manner, appeal to the Appellate Authority against any assessment within thirty-five days or such further period as may be allowed by the said authority for cause shown to its satisfaction from the receipt of a notice of demand in respect thereof: Provided that no appeal shall be entertained by the said Authority unless it is satisfied that such amount of the tax, penalty or interest, as the case may be, as the appellant may admit to be due from him has been paid. (2) Subject to such rules of procedure as may be made, the Appellate Authority, in disposing of any appeal under sub-section (1), may, - (a) confirm, reduce, enhance or annul the assessment, or (b) when such Authority is satisfied, for reasons to be recorded in writing, that it is not practicable or desirable to act in accordance with the provisions of clause (a), set aside that assessment and direct the assessing authority to make a fresh assessment after such further inquiry as may be directed. (3) While acting in accordance with the provisions of clause (b) of sub-section (2), the assessing authority shall make a flesh assessment in respect of such part or parts only and the remaining part or parts of the previous assessment shall remain unaltered and valid. (4) Pending disposal of an appeal referred to in sub-section (2), the Appellate Authority may, on application, at its discretion and subject to such conditions and restrictions as may be prescribed, stay realization of the amount of tax, penalty or interest in dispute wholly or in part. (5) Every appeal before the Appellate Authority shall be decided within a period of five years from the date of its filing: Provided that the period of stay granted by the superior court and the period spent in deciding the appeal against the interim order of the Appellate Authority, shall be excluded while computing the period of limitation: Provided further that the Appellate Authority may, for reasons to be recorded, extend the period of limitation within one year from the end of five years period for a further period of six months. (6) The appeal pending for more than five years from the appointed day under the Sikkim Sales Act, 1983, shall be disposed of within period of two years from the appointed day. (7) Where the appeal is not decided within the period as specified under sub-section (5) or sub-section (6), the appeal shall be deemed to have been allowed. Explanation - For the purposes of this section or section 76, (a) "assessment" includes- (i) assessment of tax and imposition of penalty under section 38; (ii) assessment order under section 40; (iii) determination of interest under section 43, or (iv) rectification of mistake in determination of interest under section 44; (b) "notice of demand" means any notice served in accordance with the provision of this Act for realization of the tax, penalty or interest referred to in clause (a).