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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

Dues of ₹5 lakh are demanded from Sharma Traders. The appellate authority reduces them to ₹3.2 lakh, and a recovery proceeding is pending with a recovery officer. What must the Commissioner do under the CGST provision on continuation of recovery?

The Commissioner intimates the reduction to Sharma Traders and to the recovery authority, and recovery continues for the reduced ₹3.2 lakh from the stage it had reached. No fresh demand notice is required, because section 84 dispenses with it where dues are reduced.

  1. AServe a fresh demand notice for ₹3.2 lakh on Sharma Traders
  2. BGive intimation of the reduction to Sharma Traders and to the recovery authority, and recovery continues for ₹3.2 lakh from the stage reachedCorrect
  3. CWithdraw the recovery proceeding entirely and file a new one
  4. DContinue recovery for ₹5 lakh until the person claims a refund of ₹1.8 lakh

Explanation

Under section 84(b), a reduction in appeal needs no fresh notice. The Commissioner intimates the reduction to the person and the authority with whom recovery is pending. Recovery continues for the reduced ₹3.2 lakh (₹5 lakh minus ₹1.8 lakh) from the earlier stage.

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