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

A notice of demand was served on Anand Textiles and recovery had begun. In the appeal, the demand was reduced. Under section 84 of the CGST Act as extracted, what follows?

No fresh notice of demand is needed. The Commissioner must intimate the reduction to Anand Textiles and to the authority handling recovery, and recovery continues for the reduced amount from the stage it had reached before the appeal was decided.

  1. AThe Commissioner must serve a fresh notice of demand for the reduced amount
  2. BThe Commissioner need not serve a fresh notice but must intimate the reduction to the person and to the authority where recovery is pendingCorrect
  3. CAll recovery proceedings lapse and must restart
  4. DThe reduction is intimated only to the authority and not to the taxable person

Explanation

Where dues are reduced in appeal, no fresh notice of demand is necessary. The Commissioner must intimate the reduction to the person and to the appropriate authority with whom recovery is pending. Recovery continues for the reduced amount from the stage reached before disposal, so lapse of proceedings is wrong.

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