Sec 84 – Continuation and validation of certain recovery proceedings

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Sec 84 – Continuation and validation of certain recovery proceedings 2017-04-14T11:30:32+00:00

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  • Ashish BadalaCA Ashish Badala
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    Where any notice of demand in respect of any tax, penalty, interest or any other amount payable under this Act, (hereafter in this section referred to as “Government dues”), is served upon any taxable person or any other person and any appeal or revision application is filed or any other proceedings is initiated in respect of such Government dues, then–
    (a) where such Government dues are enhanced in such appeal, revision or other proceedings, the Commissioner shall serve upon the taxable person or any other person another notice of demand in respect of the amount by which such Government dues are enhanced and any recovery proceedings in relation to such Government dues as are covered by the notice of demand served upon him before the disposal of such appeal, revision or other proceedings may, without the service of any fresh notice of demand, be continued from the stage at which such proceedings stood immediately before such disposal;
    (b) where such Government dues are reduced in such appeal, revision or in other proceedings–
    (i) it shall not be necessary for the Commissioner to serve upon the taxable person a fresh notice of demand;
    (ii) the Commissioner shall give intimation of such reduction to him and to the appropriate authority with whom recovery proceedings is pending;
    (iii) any recovery proceedings initiated on the basis of the demand served upon him prior to the disposal of such appeal, revision or other proceedings may be continued in relation to the amount so reduced from the stage at which such proceedings stood immediately before such disposal.

    Priya MadrechaPriya Madrecha
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    84.1    Introduction
    This section deals with continuation of proceedings, where a notice is already served for recovery of government dues upon a taxable person and upon any appeal, revision application there is reduction or enhancement of such Government dues.
    84.2    Analysis
    (i)    The section refers to –
     any notice of demand in respect of Government dues (tax, interest and penalty) served on taxable person or any other person; and
     any appeal, revision application is filed or other proceedings are initiated in respect of such Government dues.
    Further–
    (a)    such Government dues may be enhanced; or
    (b)    reduced in such appeal, revision or in other proceedings
    (ii)    In such cases, the Commissioner shall –
         Serve another notice on the taxable person, in respect of the enhanced amount.
         If notice of demand is already served on taxable person before such appeal, revision or any other proceedings, then recovery of enhanced amount would be continued from the stage at which the initial proceedings stood. There is no need to issue a fresh notice of demand to the extent already covered by earlier notice.
         In case the Government dues are reduced in such appeal, revision or in other proceedings – the Commissioner
    o Is not required to serve fresh notice of demand upon the taxable person; o Shall intimate such reduction to taxable person and also to appropriate authority with whom recovery proceedings are pending;
    Any recovery proceedings are initiated prior to the disposal of such appeal, revision application or other proceeding may be continued in relation to the amount so reduced from the stage at which such proceedings stood immediately before such disposal.
    84.3    Comparative review
    The provisions under this section of GST are in line with the provisions of section 45 of Delhi Value Added Tax Act, 2004.
    84.4    Related provisions
    Section     Description
    Section 73     Recovery of tax
    84.5    FAQs
    Q1.     How should the recovery proceedings of enhanced demand under an appeal, revision of application or other proceedings to be continued?
    Ans. In case of enhanced demand consequent to appeal, revision of application or other proceedings, then
     the Commissioner is required to issue fresh notice of demand only for enhance demand.
     If already recovery proceedings of Govt. dues is served on taxable person before disposal of appeal, revision of application or other proceedings, then the enhanced demand would be merged with the first recovery proceedings.
    Q2.     Under what circumstances issue of fresh notice is not necessary ?
    Ans. When a notice is already served for recovery on taxable person or any other person, before disposal of appeal, revision application or other proceedings, then issue of fresh
    notice is not required to the extent of amount covered in the notice in case of increase in demand and when there is reduction also there is no need to issue fresh notice.
    Q3. What will the fate of the recovery proceedings initiated prior to disposal of such appeal, revision or other proceedings, where Government dues are reduced?
    Ans. Where such Government dues are enhanced :
    Any recovery proceedings initiated prior to disposal of such appeal, revision or other proceedings may be continued in respect of the Government dues covered by the notice of demand served to him earlier from the stage at which it stood immediately prior to such disposal.
    Where such Government dues are reduced:
    Any recovery proceedings initiated prior to disposal of such appeal, revision or other proceedings may be continued in relation to the reduced amount from the stage at which it stood immediately prior to such disposal.
    84.6 MCQ
    Q1.     When Commissioner can issue a fresh notice to recover the Government dues?
    (a)    Demand amount is enhanced
    (b)    Demand amount is reduced
    (c)    both (a) and (b)
    Ans. (a) Demand amount is enhanced
    Q2. When Commissioner is not required to serve fresh notice to recover the Government dues:
    (a)    Demand amount is reduced
    (b)    Already proceedings of recovery of Government dues is served before disposal of appeal, revision of application or other proceedings
    (c)    Demand amount is enhanced
    (d)    Both (a) and (b)
    Ans. (d) Both (a) and (b)
    Q3.     Who can issue notice for enhanced demand by appeal, revision of application or other proceedings:
    (a)    Commissioner
    (b)    Assistant Commissioner
    (c)    Joint Commissioner
    (d)    Any of above
    Ans. (a) Commissioner

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