Remand orders must follow binding appellate findings; pending reference elsewhere cannot justify denial of modvat credit.

An authority deciding a matter on remand is bound by the remand terms and by the Tribunal's subsisting appellate finding in the assessee's own case. It cannot deny modvat credit merely because a similar issue is pending before the High Court in another reference, and it must consider all relevant evidence and applicable appellate decisions. The impugned order was held unsustainable and set aside, and the matter was sent back for fresh adjudication in accordance with law on a clean slate.

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Issues: Whether the Commissioner, while deciding the matter on remand, could ignore the Tribunal's rectified finding and deny modvat credit merely because a reference on a similar issue was pending before the High Court, and whether the impugned order was sustainable.

Analysis: The matter on remand had to be decided within the confines of the remand order, and the lower authority was bound by the Tribunal's subsisting finding on the issue. Pendency of a reference in some other proceeding could not justify disregard of the specific appellate determination in the assessee's own case. The order also suffered from non-consideration of relevant material and, in the circumstances, deserved fresh adjudication after considering all evidence and the applicable appellate decisions.

Conclusion: The impugned order was unsustainable and was set aside. The matter was remanded for fresh decision in accordance with law and after considering the Tribunal's rectified order, the High Court's decision in the reference matter, and the evidence produced by the parties.

Final Conclusion: The appeal succeeded and the dispute was sent back for reconsideration on a clean slate, with the assessee obtaining relief from the adverse order.

Ratio Decidendi: An authority acting on remand is strictly bound by the terms of the remand and cannot disregard a binding appellate finding merely because a similar issue is pending in another forum.

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