Binding remand directions in tax assessment must be followed by subordinate authorities; non-compliant reassessment cannot stand.

Under the Tamil Nadu General Sales Tax Act, a remand order issued by the appellate authority is binding on the assessing officer, who must carry out the specific directions given on verification of disputed turnover and cross-checking of accounts. A subordinate authority cannot ignore or revisit those directions merely because it disagrees with them or considers the order under challenge; the proper course is to use the statutory remedies available. An assessment made without meaningful compliance with the remand directions was treated as unsustainable and set aside, and the assessing authority was directed to proceed in accordance with the appellate remand.

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Issues: Whether the assessing officer was bound to comply with the directions issued in the appellate authority's remand order and whether an assessment made in disregard of those directions could be sustained.

Analysis: The statutory scheme under the Tamil Nadu General Sales Tax Act, 1959 creates a hierarchy of authorities and confers appellate power on the Appellate Assistant Commissioner under Section 31(3) of the Act to confirm, modify, annul, or set aside an assessment and issue binding directions on remand. Once the appellate authority had remanded the matter with specific directions for verification of the disputed turnover and cross-verification of accounts, the assessing officer was obliged to carry out those directions. The impugned order, however, merely reiterated the earlier view and did not meaningfully follow the remand directions. In revenue matters, subordinate authorities are bound by the orders of superior appellate authorities and cannot bypass them on the ground that the order is unacceptable or under challenge; the proper course is to pursue the statutory remedies available.

Conclusion: The assessment order passed in disregard of the remand directions was unsustainable and was set aside.

Final Conclusion: The writ petition succeeded, and the assessing authority was directed to act in accordance with the appellate authority's remand order.

Ratio Decidendi: Orders of a superior appellate authority are binding on subordinate assessing authorities, and a remand order must be implemented in letter and spirit unless it is stayed or set aside in lawful proceedings.

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