TMI Blog2014 (7) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... bsequent restoration by a higher appellate forum of the assessment in whole or in part, and a fresh notice of demand would be required to be issued toward recovery of the demand reviving subsequently - there is no question of levy of interest from the date immediately following the due date of payment as per the original demand notice. Where a demand notice has not been discharged in full, interest from an anterior date shall arise only to the extent the demand as finally arising is relatable to such unpaid/un-discharged demand - the liability to interest u/s 220(2) arises for such period, i.e., for which the demand actually outstands, when the whole or a part of the said demand becomes due for the payment in subsequent proceedings –thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... modification if the original demand was not satisfied within the time prescribed by law, i.e., 30 days of the service of the notice of demand, so that the assessee is deemed to be in default for some time, though of course the said demand stood satisfied and the notice of demand discharged in time, resulting in a refund to the assessee on a account of a favorable order subsequently. 3. We have heard the parties, and perused the material on record. 3.1 Our first observation in the matter is that the issue arising is not appealable. The present appeal/s arises in rectification proceedings moved under section 154 of the Act. As such, our purview in the present cases would be limited to deciding the issue arising in terms of the settled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that: a) the original DN has not been discharged in full; and/or b) there has been a delay in satisfaction of the DN (beyond the prescribed time), so that the assessee is in default for some time. It is on account of and under such circumstances that the Revenue seeks to charge interest under section 220(2) from an anterior date. We shall, as afore-stated, answer the issue/s arising on first principles, if only for the reason that the proceedings under reference are rectification proceedings, precluding admission or determination of debatable issues. The basis of the decision in the case of Vikrant Tyres Ltd. (supra) is that the original DN stands since discharged, so that there is no revival of demand with reference thereto when ..... X X X X Extracts X X X X X X X X Extracts X X X X
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