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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Procedural Compliance under GST

Under Section 84 of the CGST Act, 2017, a notice of demand is served and an appeal then enhances the Government dues. Which statement is correct?

When dues are enhanced in appeal, the Commissioner must serve another notice of demand for the additional amount only. Recovery on the earlier notice continues from the stage it had reached, without a fresh notice for that part.

  1. AThe earlier recovery proceedings lapse and must be restarted on the whole enhanced amount
  2. BThe Commissioner serves another notice of demand for the enhanced amount, and recovery on the original demand continues without a fresh noticeCorrect
  3. CNo further notice is needed, and recovery is made on the enhanced amount under the original notice
  4. DThe Commissioner may recover the enhanced amount only after a fresh adjudication by the Tribunal

Explanation

Section 84(a) requires the Commissioner to serve another notice of demand for the amount by which the dues are enhanced. Recovery already covered by the earlier notice may continue from the stage it had reached, without a fresh notice. So the original recovery does not lapse, and the enhancement is not covered by the old notice.

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