Fresh legal grounds in appeal may still be raised where they concern the same assessment order, despite an earlier concession of law.

An assessee's challenge to purchase tax and consequential penalty was held not barred merely because a concession had earlier been made before the first appellate authority. The appeal was treated as covering the assessment order as a whole, so a fresh or different legal ground could still be urged if it related to the same subject-matter. An erroneous concession of law, particularly one inconsistent with binding authority, could not prevent adjudication on merits. Because penalty under section 45 depended on liability to purchase tax under section 16, the Tribunal was required to examine both questions and could not refuse to entertain the grounds.

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Issues: Whether the Tribunal was right in refusing to entertain the assessee's challenge to purchase tax and consequential penalty on the ground that a concession had earlier been made before the first appellate authority.

Analysis: The controversy turned on whether the appeal before the first appellate authority covered the entire assessment order and whether the written concession could amount to abandonment of the legal challenge. The Court held that the subject-matter of the appeal remained the assessment order as a whole, and that a party is not barred from urging an additional or different legal approach so long as it relates to the same subject-matter. A concession on a point of law, especially one contrary to binding authority, cannot preclude adjudication on merits. Since liability to penalty under section 45 depended upon liability to purchase tax under section 16, the Tribunal was required to consider both questions.

Conclusion: The Tribunal was not justified in declining to entertain the grounds; both questions had to be answered in favour of the assessee.

Ratio Decidendi: A fresh legal ground may be urged in appeal if it pertains to the same subject-matter, and an erroneous concession of law does not bar consideration of the issue on merits.

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