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CA Final · Indirect Tax Laws · Appeals and Revision (GST)

A demand notice of Rs 20 lakh was served on Vikas Traders and recovery proceedings began. On appeal, the demand is reduced to Rs 12 lakh. Under section 84 of the CGST Act, what follows?

No fresh notice is required. The Commissioner intimates the reduction to the person and to the authority with whom recovery is pending, and recovery continues for the reduced amount of Rs 12 lakh from the stage at which it stood before the appeal was disposed of.

  1. AA fresh notice of demand for Rs 12 lakh must be served and recovery restarted
  2. BThe Commissioner gives intimation of the reduction to the person and to the authority where recovery is pending, and recovery continues for the reduced amount from the stage reachedCorrect
  3. CAll recovery proceedings lapse and must be initiated afresh
  4. DRecovery continues for Rs 20 lakh until a refund of Rs 8 lakh is claimed

Explanation

On reduction in appeal, no fresh notice of demand is needed. The Commissioner intimates the reduction to the person and to the authority with whom recovery is pending, and recovery continues for the reduced amount from the stage it had reached. Restarting or continuing for the full amount contradicts this.

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