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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 of Rs 8,00,000 was served on Kavya Enterprises and recovery had begun. In revision, the dues were enhanced to Rs 11,00,000. Which course is correct under section 84 of the CGST Act?

A further notice of demand is served only for the enhanced Rs 3,00,000. Recovery of the original Rs 8,00,000 continues from the stage it had reached, without any fresh notice, because section 84 requires a new notice only for the enhancement.

  1. AServe another notice of demand for Rs 3,00,000 only, and continue recovery of the original Rs 8,00,000 without a fresh notice from the stage reachedCorrect
  2. BServe a fresh notice for the entire Rs 11,00,000 and restart recovery
  3. CServe no notice, and recover Rs 11,00,000 under the original demand
  4. DServe another notice for Rs 3,00,000 and restart all recovery from the beginning

Explanation

Enhancement is 11,00,000 minus 8,00,000 = Rs 3,00,000. Section 84(a) requires another notice for the enhanced amount, while recovery for the original demand continues without a fresh notice from the stage it had reached. A notice for the whole amount or a restart is not required.

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