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

Zenith Pharma was served a demand notice of Rs 10 lakh, and recovery proceedings began. On appeal, the demand was reduced to Rs 6 lakh. Under section 84 of the CGST Act, what is the position?

No fresh notice of demand is needed when dues are reduced in appeal. The Commissioner intimates the reduction to the person and the recovery authority, and recovery continues for the reduced amount from the stage it had reached before the appeal was disposed of.

  1. AA fresh notice of demand for Rs 6 lakh must be served and recovery restarted
  2. BThe Commissioner gives intimation of the reduction to the person and the authority where recovery is pending, and recovery continues for the reduced amount from its existing stageCorrect
  3. CAll recovery proceedings lapse and must be initiated afresh
  4. DRecovery continues for Rs 10 lakh until the appellate order is finally implemented

Explanation

On reduction in appeal, no fresh notice of demand is necessary. The Commissioner intimates the reduction to the person and to the appropriate authority with whom recovery is pending, and recovery may continue for the reduced amount from the stage reached. A fresh notice is needed only where dues are enhanced.

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