Binding force of Tribunal rulings remains until stayed; remand upheld because mere reference proceedings do not suspend the decision.

The filing of a reference application before the High Court does not by itself suspend the binding force of a Tribunal decision, and in the absence of any stay that decision remains operative and must be followed by lower authorities. On that basis, the Commissioner (Appeals) was justified in directing the lower authority to consider the earlier Tribunal ruling and in remanding the matter for fresh adjudication consistent with it. The remand was therefore sustained and the Revenue challenge failed.

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Issues: Whether the Commissioner (Appeals) was justified in remanding the matter for fresh decision after directing the lower authority to consider an earlier Tribunal decision, and whether the mere filing of a reference application before the High Court had the effect of suspending the binding force of that Tribunal decision.

Analysis: The appeal turned on the limited question whether the earlier Tribunal decision, though challenged by the Revenue in reference proceedings, remained operative in the absence of any stay by the High Court. The filing of a reference application, by itself, did not suspend the operation of the Tribunal's order. As a result, the authorities below were bound to follow that decision, and the Commissioner (Appeals) committed no infirmity in remanding the matter for fresh adjudication in accordance with it.

Conclusion: The remand order was upheld and the Revenue's appeal was rejected.

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