Skip to content

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

A notice of demand of Rs 10 lakh was served on Anand Steels Pvt Ltd and recovery proceedings began. In appeal, the Government dues were reduced to Rs 6 lakh. Under the recovery provision on continuation of proceedings, which statement is correct?

No fresh notice of demand is required. The Commissioner must intimate the reduction to the taxpayer and to the authority where recovery is pending, and recovery continues for the reduced amount of Rs 6 lakh from the stage at which proceedings stood before the disposal.

  1. AThe Commissioner must serve a fresh notice of demand for Rs 6 lakh and restart recovery
  2. BAll recovery proceedings lapse and must begin afresh after the appeal
  3. CNo fresh notice is needed; the Commissioner intimates the reduction to the person and the authority where recovery is pending, and recovery continues for the reduced amount from the stage reachedCorrect
  4. DNo fresh notice is needed, and the Commissioner need not inform the recovery authority

Explanation

On reduction, it is not necessary to serve a fresh notice of demand. The Commissioner must intimate the reduction to the person and to the appropriate authority with whom recovery is pending. Recovery then continues for the reduced amount from the stage at which it stood. Hence fresh notice or restart is wrong, and omitting the intimation is also wrong.

Did you get it right without looking?

One question tells you little. A timed set on Appeals and Revision (GST) shows your real accuracy, how long you take and where you lose marks.

Practise Appeals and Revision (GST)Free diagnostic mock

More Appeals and Revision (GST) questions