A new design for fault tolerant and fault recoverable ALU System has been proposed in this paper. Reliability is one of the most critical factors that have to be considered during the designing phase of any IC. In critical applications like Medical equipment & Military applications this reliability factor plays a very critical role in determining the acceptance of product. Insertion of special modules in the main design for reliability enhancement will give considerable amount of area & power penalty. So, a novel approach to this problem is to find ways for reusing the already available components in digital system in efficient way to implement recoverable methodologies. Triple Modular Redundancy (TMR) has traditionally used for protecting digital logic from the SEUs (single event upset) by triplicating the critical components of the system to give fault tolerance to system. ScTMR- Scan chain-based error recovery TMR technique provides recovery for all internal faults. ScTMR uses a roll-forward approach and employs the scan chain implemented in the circuits for testability purposes to recover the system to fault-free state. The proposed design will incorporate a ScTMR controller over TMR system of ALU and will make the system fault tolerant and fault recoverable. Hence, proposed design will be more efficient & reliable to use in critical applications, than any other design present till today.