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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Assessment, Audit, Scrutiny, Demand and Recovery, Advance Ruling, Appeals and Revision

A notice of demand for Government dues is served on a registered person under the CGST Act, and the person files an appeal. In the appeal, the dues are enhanced. Which statement correctly describes the position for recovery?

Where appeal enhances the dues, the Commissioner serves another demand notice only for the additional amount, while recovery on the original demand continues from its existing stage without any fresh notice for that original amount.

  1. AThe Commissioner serves another notice of demand only for the enhanced amount, and recovery on the original demand may continue without a fresh noticeCorrect
  2. BAll earlier recovery proceedings lapse and must begin afresh on the entire enhanced amount
  3. CNo further notice is needed for the enhanced amount because the appellate order itself is treated as the demand
  4. DThe Commissioner must withdraw the original notice and serve one consolidated notice before any recovery continues

Explanation

Section 84(a) requires another notice of demand for the amount by which the dues are enhanced. Recovery proceedings on the original demand may continue from the stage they had reached, without a fresh notice. Hence the lapse or consolidation options are wrong.

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