Continuation of certain recovery proceedings :

Where any notice of demand for tax, interest, and penalty is served upon any taxable person and any appeal, revision is filed or other proceedings initiated in respect of such dues, then, where dues are enhanced in appeal/revision/proceeding, the Commissioner shall serve upon the person another notice of demand only in respect of the amount by which such dues are enhanced and any recovery proceeding in relation to the dues covered by the notice of demand served on such person before the disposal of such appeal/revision/proceeding may without service of any fresh notice of demand, be continued from the stage at which such proceedings stood immediately before such disposal.

Where the dues are reduced in appeal/revision/proceeding, it shall not be necessary for the Commissioner to serve upon the taxable person a fresh notice of demand. The Commissioner shall give an intimation of such reduction to the person or the appropriate authority with whom the recovery proceeding is pending. Any recovery proceedings initiated on the basis of demand served upon him prior to the disposal of such appeal /revision/proceeding may be continued in relation to the amount so reduced from the stage at which such proceedings stood immediately before such disposal.