Skip to content

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

Kaveri Traders received a demand notice for Rs 8 lakh of tax. Its appeal was heard, and the appellate authority reduced the dues to Rs 5 lakh while recovery proceedings on the original demand were pending. Under section 84 of the CGST Act, which statement is correct?

No fresh notice of demand is needed. The Commissioner must intimate the reduction to the taxpayer and to the authority handling recovery, and recovery continues for the reduced amount from the stage already reached. A fresh notice is needed only where dues are enhanced, and then only for the extra amount.

  1. AA fresh notice of demand for Rs 5 lakh must be served before recovery continues
  2. BAll recovery proceedings lapse and must be restarted afresh
  3. CThe Commissioner need not serve a fresh notice but must intimate the reduction to the taxpayer and to the authority with whom recovery is pendingCorrect
  4. DThe Commissioner must intimate only the taxpayer, and recovery continues for the full Rs 8 lakh

Explanation

Where dues are reduced in appeal, no fresh notice of demand is required. The Commissioner must give intimation of the reduction to the taxable person and to the appropriate authority with whom recovery is pending. Recovery may continue for the reduced amount from the stage reached before disposal. Serving a fresh notice is needed only for an enhanced amount, and only for the enhancement.

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