Section 84. Continuation and validation of certain
recovery proceedings.-
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.
