Section 84 keeps recovery on track when an appellate or revisional order changes a demand. A reduction simply reduces the recovery; an enhancement needs a fresh notice of demand for the extra amount only.
Key points
- Under section 84 of the CGST Act, 2017, where a demand served on a person is the subject of an appeal, revision or other proceeding and is enhanced, a notice of demand for the enhanced part must be served, while recovery already begun continues for the original amount.
- Where the demand is reduced, a fresh notice is not needed; the proper officer informs the person of the reduction and recovery continues for the reduced amount.
The provisions
84Continuation of recovery proceedings
Statutory text
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.
*Enforced w.e.f. 1st July, 2017.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- What happens to GST recovery if a demand is reduced in appeal?
- Under section 84 of the CGST Act recovery continues for the reduced amount without a fresh notice; if the demand is enhanced, a fresh notice is needed only for the increase.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
Any recovery begun before the appellate order continues from the stage it had reached. Amounts recovered beyond the reduced demand are refundable.