Valid service of notice on erstwhile partners must be clearly decided on remand before confirming a demand.

Where an adjudicating authority on remand fails to decide the specific issue directed by the appellate forum, the resulting order is liable to be set aside. The Tribunal required a clear finding on whether valid notice had been served on the partners of the dissolved firm before a demand under Section 11A could be confirmed. As the impugned order did not answer that core question and instead went beyond the scope of remand, it was held infirm. The matter was remanded again to the Commissioner for fresh consideration and a proper order after giving the party an opportunity of hearing.

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Issues: Whether the adjudicating authority failed to comply with the Tribunal's remand direction by not recording a clear finding on the validity of service of notice on the partners of the erstwhile firm for raising a demand under Section 11A, thereby warranting a further remand.

Analysis: The remand direction required the Commissioner to determine whether valid notice had been served on the partners of the dissolved partnership firm before proceeding to confirm the demand. The impugned order did not return a clear finding on that essential question and instead introduced observations beyond the scope of the earlier remand. Since the core issue directed for consideration remained unanswered, the order suffered from infirmity and could not be sustained.

Conclusion: The issue was decided in favour of the assessee and the matter was remanded to the Commissioner for fresh consideration and a proper order after giving opportunity to the party.

Final Conclusion: The decision sets aside the impugned adjudication and requires a fresh decision on the validity of service of notice and the consequential demand.

Ratio Decidendi: Where an adjudicating authority, on remand, fails to decide the specific issue directed by the appellate forum, the resulting order is liable to be set aside and the matter remitted for compliance with the remand directions.

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