Compound levy duty computation must follow binding remand directions and the prescribed production figures, not an earlier year's data.

For duty determination under the compound levy scheme, the production figures for 1997-98 had to be adopted in accordance with the Tribunal's remand directions and Trade Notice No. 18/98, and the Commissioner could not substitute the 1996-97 figures. The authority was bound to follow the remand order and the directed basis of computation; using the earlier year's production was inconsistent with that mandate. The corrected calculation was therefore required on the 1997-98 production figure, and consequential relief followed from the revised duty computation.

---

---

Issues: Whether, for duty determination under the compound levy scheme, the production figures for 1997-98 were required to be adopted in terms of the Tribunal's remand directions and Trade Notice No. 18/98 instead of the 1996-97 figures.

Analysis: The Tribunal had earlier remanded the matter with a direction to implement Trade Notice No. 18/98, dated 7-4-1998, which required adoption of the 1997-98 production figures in place of the 1996-97 figures for the relevant determination. The Commissioner was bound to follow the remand order and could not ignore the directed basis for computation. Since the 1997-98 production stood at 5253.94 MTs, reliance on the 1996-97 production figure was inconsistent with the earlier direction.

Conclusion: The 1997-98 production figures had to be adopted and the 1996-97 figures could not be used for the determination.

Final Conclusion: The appeal succeeded and the assessee obtained the consequential relief flowing from the corrected duty computation.

Ratio Decidendi: A departmental authority must comply with binding remand directions and applicable trade notices while finalising duty determination, and cannot substitute an impermissible production basis contrary to those directions.

---